David McNew, Getty Images
Industryweek 13116 030117 Us Manufacturing Davidmcnew

US Factory Gauge Continues to Signal Solid Expansion in July

Aug. 1, 2017
Optimism about the economy is enduring among American businesses even as prospects dissipate for swift changes on tax and infrastructure policy from Washington lawmakers.

American manufacturers turned in another solid month in July amid steady growth in production, orders and employment, according to figures from the Institute for Supply Management released Tuesday.

Factory index eased to 56.3 (forecast was for 56.4) from 57.8 a month earlier; readings above 50 indicate growth.

Employment gauge cooled to 55.2 from 57.2.

ISM’s gauge of new orders eased to 60.4 from 63.5.

Key Takeaways

While the ISM index settled back from a June level that was the second-highest since 2011, it remains above the average over the past year, as are its three main gauges. The figures signal that optimism about the economy is enduring among American businesses even as prospects dissipate for swift changes on tax and infrastructure policy from Washington lawmakers.

Goods producers are sustaining progress that’s been building since 2015. Steady U.S. consumer and business demand, along with a recovering global economy, are allowing manufacturing to hit its stride.

A pickup in the ISM’s prices-paid index indicates more factories also reported paying higher prices for inputs and raw materials last month, also a reflection of improving world demand.

Other Details

  • Measure of export orders decreased to 57.5 in July from 59.5.
  • Production index cooled to 60.6 from 62.4.
  • Order backlogs measure fell to 55 from 57.
  • Index of prices paid increased to 62 from 55, the biggest one-month increase this year.

By Michelle Jamrisko

Popular Sponsored Recommendations

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

Four Keys To Operational Excellence

Sept. 20, 2023
As manufacturers face supply chain disruption and shrinking margins, increasing operations performance is critical. Our smart manufacturing guidebook can help you achieve the ...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!