July Manufacturing News: Could Be Worse
Manufacturing in July continued to slow but at the slowest pace in a year, according to a closely watched index of the sector.
According to the Institute for Supply Management, manufacturing activity crept up toward the break-even point that shows the sector has moved from contraction to expansion.
The ISM's index says that any reading above 50 shows manufacturing expansion, while any reading below 50 shows contraction.
In July, that number went from 44.8 to 48.9.
"The latest ISM reports shows that factory output is recovering as both GM and Chrysler recover from bankruptcy," writes Steven Ricchiuto, chief economist for Mizhuo Securities USA. "As the two beleaguered manufacturers restart idled plants, parts manufacturers have to speed up assembly lines. Policy initiatives like the cash for clunkers deal has helped to clean out dealer lots, setting the stage for a healthy assembly plan heading in to the new model year."
August 3, 2009; 10:56 AM ET
Categories: The Ticker | Tags: manufacturing
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Posted by: Dermitt | August 3, 2009 2:55 PM | Report abuse
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