by Mike ‘Mish’ Shedlock
This morning, the July 2016 Manufacturing ISM® Report On Business® showed a slight decline in growth from 53.2 to 52.6, a decrease of 0.6 percentage point.
Bloomberg Econoday nearly went gaga over the report.
Employment fell slightly and delays in delivery times eased, two factors that held down the July ISM index to 52.6 vs June’s 53.2. But that’s not the important news. The important news is the new orders index which remains extremely solid, at 56.9 and pointing to future strength for employment as well perhaps as slowing for future deliveries (slowing in deliveries is an indication of strength in demand, of congestion in the supply chain).
Export orders are not as strong as domestic orders but they are respectable, at 52.5 which is safely above breakeven 50 to indicate monthly growth. The reading here echoes even stronger export results the manufacturing PMI which was released earlier this morning.