According to the Manufacturing ISM Report on Business, economic activity in the manufacturing sector expanded in July for the 31st consecutive month, and the overall economy grew for the 74th consecutive month.

The New Orders Index registered an increase to 56.5%, a bump of 0.5 percentage point from the reading of 56% in June. The Production Index registered 56%, marking an even greater jump compared to June (54%).

However, some areas of the sector took a downturn. The July PMI registered 52.7%, a decrease of 0.8 percentage point from the June reading of 53.5%. The Employment Index registered 52.7%, which was 2.8 percentage points below the June reading of 55.5%, reflecting growing employment levels from June at a slower rate. Inventories of raw materials also fell, registering at 49.5%, which is a decrease of 3.5 percentage points from the June reading of 53%.

Comments from the panel reflect a combination of optimism mixed with uncertainties about international markets and the impacts of the continuing decline in oil prices.

Of the 18 manufacturing industries, 11 reported growth in July in the following order: Textile Mills; Paper Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Furniture & Related Products; Fabricated Metal Products; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Transportation Equipment; and Miscellaneous Manufacturing. The five industries that reported contraction in July are: Wood Products; Primary Metals; Plastics & Rubber Products; Chemical Products; and Machinery.

The full ISM report can be found here.