TEMPE, Ariz. — Economic activity in the manufacturing sector contracted in July for the fourth consecutive month and the 20th time in the last 21 months, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

The five manufacturing industries reporting growth in July are Printing & Related Support Activities; Petroleum & Coal Products; Miscellaneous Manufacturing; Furniture & Related Products; and Nonmetallic Mineral Products.

The eleven industries reporting contraction in July are Primary Metals; Plastics & Rubber Products; Machinery; Electrical Equipment, Appliances & Components; Transportation Equipment; Fabricated Metal Products; Food, Beverage & Tobacco Products; Wood Products; Paper Products; Chemical Products; and Computer & Electronic Products.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee:

“The Manufacturing PMI registered 46.8 percent in July, down 1.7 percentage points from the 48.5 percent recorded in June. The overall economy continued in expansion for the 51st month after one month of contraction in April 2020."

Fiore continues, “U.S. manufacturing activity entered deeper into contraction. Demand was weak again, output declined, and inputs stayed generally accommodative."

Demand slowing was reflected by:

• New Orders Index dropping further into contraction.
• New Export Orders Index continuing in contraction.
• Backlog of Orders Index remaining in strong contraction territory.
• Customers’ Inventories Index moving lower to the higher end of ‘too low’. 

Output declined compared to June, with a combined 8.5-percentage point downward impact on the Manufacturing PMI calculation. Panelists’ companies reduced production levels month over month as head-count reductions continued in July. 

Inputs — defined as supplier deliveries, inventories, prices, and imports — generally continue to accommodate future demand growth.

To read the full report, visit textileworld.com.