ISM Manufacturing Index down in July, 3MMA Advanced

The Institute of Supply Management released their July report on August 3rd. An explanation of the ISM index is given at the end of this piece. After seven straight months of decline the index gained 1.3 points in May a further 0.7 points in June then declined by 0.8 points in July to 52.7 with a three month moving average of 53.0. The 3MMA declined for seven straight months between October and May then increased in June and July. Any number >50 indicates expansion. The three month moving average at 53.0 is above the 304 month average since March 1990 which stands at 52.21. There has only been one month in over five years that the index has not exceeded the positive growth threshold of 50, (Figure 1).