July Manufacturing ISM Report On Business®; PMI at 50.9%; Production and Employment Growing; Supplier Deliveries Slower; New Orders and Inventories Contracting

Employment

ISM’s Employment Index registered 53.5 percent in July, which is 6.4 percentage points lower than the 59.9 percent reported in June. While this month represents the 22nd consecutive month of growth in manufacturing employment, the July reading is also the lowest reading since December 2009, when the index registered 53.2 percent. An Employment Index above 50.1 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of the 18 manufacturing industries, nine reported growth in employment in July in the following order: Computer & Electronic Products; Paper Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Transportation Equipment; Machinery; and Chemical Products. The five industries reporting a decrease in employment in July are: Petroleum & Coal Products; Apparel, Leather & Allied Products; Miscellaneous Manufacturing; Plastics & Rubber Products; and Food, Beverage & Tobacco Products.

Employment           %Higher         %Same         %Lower         Net         Index
 
Jul 2011 24 63 13 +11 53.5
Jun 2011 34 56 10 +24 59.9
May 2011 31 60 9 +22 58.2
Apr 2011 34 61 5 +29 62.7

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