August 3, 2009

Manufacturing contracted in July, according to the latest Manufacturing ISM Report on Business. However, the decline in manufacturing was slower in July when compared to June, as the more leading components of the PMI – the New Orders and Production Indexes – rose significantly above 50%, thus setting an expectation for future growth in the sector.

The Employment and Inventories Indexes are still contracting, but the rate is slowing and they are moving in the right direction, the report said. The New Export Orders Index shows growth following nine consecutive months of decline, suggesting that the global economy is recovering.

Six of the 18 manufacturing industries reported growth in July. These industries – listed in order – are: Nonmetallic Mineral Products; Paper …

Global operating conditions stabilized in July, following a sustained period of weakness, according to the JPMorgan Global Manufacturing PMI, which stood at 50.0. PMIs remained above 50.0 in China, India and Turkey and rose back above this level in Japan and the UK for the first time in 17 and 16 months respectively.

The Global Manufacturing Output Index rose to an 18-month high in July. At a twenty-month high of 53.3, the Global Manufacturing New Orders Index pointed to an increase in new work received for the first time since March 2008. International trade volumes rose slightly in July, following ten months of sustained decline. “Global manufacturing started Q3 2009 on a strong footing,” said David Hensley, director of Global Economics Coordination at JPMorgan. “The PMI indicates …