WASHINGTON (Reuters) – U.S. manufacturing activity stabilized in July, albeit at a low level, on the back of a gradual improvement in new orders, while employment in the sector fell to a three-year low, suggesting layoffs are accelerating.
According to the results of the Institute for Supply Management (ISM) monthly survey published on Tuesday, the ISM manufacturing index came out last month at 46.4 against 46.0 in June, which was the lowest level at the time. since May 2020.
This is the ninth month in a row that this index has fallen below the 50 mark separating growth and contraction in activity. It is also the longest streak since the 2007-2009 financial crisis.
Economists polled by Reuters had on average forecast a July figure of 46.8.
Despite the rise in interest rates, which should weigh on demand, the sub-index for new orders in the manufacturing industry fell from 45.6 to 47.3.
At the same time, the prices paid by companies in the sector rose from 41.8 to 42.6.
The employment component fell to 44.4, the lowest level since July 2020, from 48.1 in June.
Another manufacturing PMI published earlier, that of S&P Global, came out at 49.0 in final version, in line with the first estimate.
(Report Lucia Mutikani; French version Claude Chendjou, edited by Blandine Hénault)
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