July manufacturing output decreases again, amid a grim outlook, reports ISM

Manufacturing output took another step back in July, declining for the fourth consecutive month, according to the new edition of the Manufacturing Report on Business, which was issued today by the Institute for Supply Management (ISM).

The report’s benchmark reading, the PMI, came in at 46.8 (a reading of 50 or higher indicates growth), down 1.7% compared to June’s 48.5 reading. The May PMI was at 48.7, which was down 0.5% from April’s 49.2. April was off 1.1% compared to March’s 50.3 reading. March saw growth after a 16-month stretch of contraction—that was preceded by a stretch of 28 consecutive months of growth. ISM added that with July down, the PMI has contracted, at a faster rate, for four straight months, with the PMI not seeing growth in 20 of the last 21 months, with the overall economy growing, at a slower rate, for the 51st consecutive month.

The July PMI is 1.3% below the 12-month average of 48.1, with March’s 50.3 marking the high over that period, and November 2023 marking the lowest, at 46.6.

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