The Housing Chronicles Blog: ISM Manufacturing Index dips to 58.1, high concerns regarding tariffs

Wednesday, August 1, 2018

ISM Manufacturing Index dips to 58.1, high concerns regarding tariffs

The July PMI® registered 58.1 percent, a decrease of 2.1 percentage points from the June reading of 60.2 percent.

Production and employment continues to expand in spite of labor and material shortages. Inputs — expressed as supplier deliveries, inventories and imports — had expansion increases, due primarily to negative supply chain issues, but at easing levels compared to the prior month. Price pressure remains strong, but the index softened for the second straight month.

Demand remains robust, but the nation’s employment resources and supply chains continue to struggle. Respondents are again overwhelmingly concerned about how tariff-related activity, including reciprocal tariffs, will continue to affect their business.

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