US manufacturing expanded for the fourteenth straight month in July, but growth slowed to a six-month low.
- The July Manufacturing PMI stood at 59.5, down from June’s 60.6. This is the lowest in six months since January’s 58.7.
- Declines were recorded in new orders, production, prices, backlogs, inventories, new export orders, and imports, while employment increased for the month.
- ISM Chair Timothy Fiore said firms continued to struggle to meet the growth in demand amid the ongoing shortage of critical basic materials.
- Other issues for the month include rising commodity prices, shipping difficulties, lack in staffing, and short-term shutdowns.
- All six of the biggest manufacturing industries recorded moderate to strong growth, also driven by strong demand.
- Firms expect business levels to remain strong, but hiring remains difficult, with some only filling 75% of their orders due to lack of manpower.