ISM Manufacturing Index Gains in July

Manufacturing activity improved in July and shrank at the slowest pace in nearly a year, the Institute for Supply Management said Monday.

ISM’s monthly factory services index rose to a reading of 48.9, from 44.8 in June, ISM said in its monthly report. It was the slowest pace of contraction since last August.

Figures of more than 50 indicate expansion, while below that shows contraction.

The improvement indicated some expectations for future improvement, said Norbert Ore, chair of ISM’s business survey committee.

Six of ISM’s 18 manufacturing industries reported growth in July, including nonmetallic mineral products, paper products; printing and related activities; electrical equipment, appliances and components, transportation equipment and chemical products.

The production index rose 5.4 points to 57.9, while employment gained 4.9 to a 45.6 reading. New orders jumped 6.1 points to 55.3

ISM’s factory index measures manufacturing components of the economy.