ISM Manufacturing Index Expands at Slower Pace

U.S. manufacturing activity rose in July at the slowest pace this year, the Institute for Supply Management said Monday.

ISM’s monthly index slipped to a reading of 55.5, from 56.2 in June, the group said. Figures of more than 50 indicate expansion.

The reading was higher than economists’ forecasts of a 54.5 reading, Bloomberg reported.

“Employment, supplier deliveries and inventories improved during the month and reduced the impact of a month-over-month deceleration in new orders and production,” said Norbert Ore, chair of ISM’s business survey committee.

“July marks 12 consecutive months of growth in manufacturing, and indications are that demand is still quite strong in 10 of 18 industries,” he said in a statement. “The prices that manufacturers paid for their inputs were slightly higher but stable, with only a few items on the short supply list.”

The ISM factory index measures manufacturing components of the economy.