Manufacturing PMI in US drops to lowest level in 7 months
Date
7/25/2024 5:03:08 AM
(MENAFN) On Wednesday, S&P Global released a report indicating a significant decline in the US Manufacturing Purchasing Managers’ Index (PMI) for July, reaching its lowest level in seven months. The PMI, which gauges the activity level among purchasing managers in the manufacturing sector, fell by 2.1 points to 49.5 in July from 51.6 in June. This decline is notable as the index's expected reading was 51.7, and it fell below the crucial 50-mark, signaling a contraction in the sector.
The report highlights that this drop in the PMI reflects a broader downturn in manufacturing activity. Specifically, the report notes that manufacturing output has fallen into a decline for the first time in six months, marking a significant shift in the sector's performance. This downturn is attributed to decreases in new orders, production, and inventories, with new orders experiencing a particularly sharp drop.
In addition to the decline in orders and production, the PMI was further impacted by a reduced rate of employment growth. The slowdown in job creation within the manufacturing sector has contributed to the overall decline in the PMI, reflecting challenges in maintaining momentum and growth in manufacturing activity.
Overall, the sharp decrease in the PMI underscores a period of contraction in the manufacturing sector. The combination of declining orders, output, and slower employment growth indicates that the sector is facing notable headwinds, marking a significant shift from the previous months of expansion and highlighting ongoing uncertainties in the manufacturing landscape.
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