The Institute for Supply Management (ISM) reported Thursday that economic activity in the manufacturing sector expanded in July for the second consecutive month, and the overall economy grew for the 50th consecutive month.
The Purchasing Managers' Index (PMI) registered 55.4 percent, an increase of 4.5 percentage points from June's reading of 50.9 percent, and the strongest since June 2011. June's PMI reading, the highest of the year, indicates expansion in the manufacturing sector for the second consecutive month.
The New Orders Index increased in July by 6.4 percentage points to 58.3 percent, and the Production Index increased by 11.6 percentage points to 65 percent. The Employment Index registered 54.4 percent, an increase of 5.7 percentage points compared to June's reading of 48.7 percent. The Prices Index registered 49 percent, decreasing 3.5 percentage points from June, indicating that overall raw materials prices decreased from last month.