U.S. Manufacturing PMI
- The IHS Markit U.S. Manufacturing PMI notched another record in July, with strong growth in demand, production and hiring, and respondents remained very positive in their outlook for the next six months. Yet, the sector continues to experience record-setting supplier shortages and cost pressures, with the backlog of orders also just shy of May’s record pace.
- Meanwhile, the Institute for Supply Management® reported that manufacturing activity expanded robustly once again, even with the headline index edging down from 60.6 in June to 59.5 in July, a six-month low. The sample comments noted continuing concerns with supply chain disruptions, rising costs and workforce shortages. Prices pulled back in July after soaring in June at the fastest pace since July 1979 but remained very elevated.
- Manufacturing employment rose by 27,000 in July. Over the first seven months of 2021, total employment in the sector has risen by 135,000. There remained 433,000 fewer manufacturing employees relative to pre-pandemic levels. The average hourly earnings of production and nonsupervisory workers in manufacturing rose from $23.78 in June to $23.86 in July, with a 4.5% increase over the past year, up from $22.84 in July 2020.
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