Input Stories

U.S. manufacturing activity fell to an eight-month low in July, primarily on a decline in new orders (Reuters).

What’s going on: “The Institute for Supply Management (ISM) said on Thursday that its manufacturing PMI dropped to 46.8 last month, the lowest reading since November, from 48.5 in June.”

• A reading below 50 indicates a decline in the manufacturing sector, which makes up 10.3% of the economy in the U.S.
• Reuters-polled economists had predicted the PMI moving up to 48.8.

The details: The key index of new orders declined to 47.4 in July from 49.3 the month prior.

• Output continued to fall, with the production barometer sliding to 45.9 from 48.5 in June.
• Prices paid by manufacturers rose to 52.9 from 52.1 in June.

However … While “manufacturing has been undercut by higher interest rates, the situation is probably not as dire as suggested by sentiment surveys such as the ISM. So-called hard data from the government and Federal Reserve suggests the industry has stabilized.”