Economy
August 3, 2014
ISM PMI Reaches High of 57.1 in July
Written by Sandy Williams
The July ISM Report on Business indicates that activity in the manufacturing sector increased last month. The July PMI rose 1.8 percent to 57.1 for the highest reading since April 2011 and the 14th consecutive monthly increase. A PMI reading in excess of 43.2 percent, over a period of time, also indicates an expansion of the overall economy. July’s reading was has exceeded that level for 62 consecutive months.
The indices for new orders increased 4.5 percent to 63.4 percent and production increased 1.2 percentage points to 61.2 percent. Inventories of raw materials decreased 4.5 percent to 48.5, a reading that is considered too low. The pricing index rose by 1.5 points to 59.5.
