Manufacturing Growth Scales to Five-Month High
Those of us in the economic development industry are always looking at economic indicators for signs of overall industry growth and health. According to the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI), manufacturing in the United States grew for the fifth straight month in July 2016. In addition, the economy overall grew for the 86th consecutive month.
This growth, which started in March, suggests that manufacturing is continuing to recover gradually. The July PMI ranked at 52.6 percent, which is a decrease from June at 53.2 percent, but according to ISM, any number registering over 50 is a sign of growth.
Eleven out of eighteen manufacturing industries reported growth in July, which included textiles, printing, wood, furniture, chemicals, food and beverage, metals, nonmetallic minerals, petroleum and coal, fabricated metal, and computer and electronic products.
The production index also grew in the month of July from 54.7 in June up to 55.4 in July. This trend has been noted by ISM as growing quickly for the past seven months. While the employment index remained about the same, the continuing growth in the overall economy, manufacturing sector, and production indicates that employment should begin to grow as well in the coming months.
To view the full report, you can visit the Institute for Supply Management’s website.