The Institute for Supply Management's Purchasing Managers' Index (PMI) registered 49.8 percent in July, an increase of 0.1 percent percentage points from June's reading but indicating contraction the manufacturing sector for the second consecutive month. Any reading over 50 percent indicates general expansion of the manufacturing sector.
The new orders index increased 0.2 percentage points to 48 percent; but the production and employment index remained in growth territory, registering 51.3 percent and 52 percent, respectively. Meanwhile, the prices index for raw materials registered 39.5 percent, an increase of 2.5 percentage points, indicating lower prices on average for the third consecutive month.