This past July, the Markit US Manufacturing Purchasing Managers’ Index (PMI) was 53.8, which picked up slightly from the 20-month low seen in June (53.6). The latest reading was above the 50.0 no-change mark and higher than the long-run series average (52.2), thereby indicating a solid improvement in overall business conditions.
July’s survey data highlights that the U.S. manufacturing recovery stepped up a gear at the start of the third quarter, largely driven by the fastest rise in overall new business volumes since March. However, there were signs that manufacturers remained cautious regarding the business outlook, as purchasing activity expanded at the slowest pace for 18 months and job creation eased to a three-month low in July. Meanwhile, input cost inflation remained subdued and factory gate charges increased only marginally during the latest survey period.