ISM Manufacturing Index Gains in July

he Institute for Supply Management’s manufacturing index gained in July, the group said Tuesday.

SM’s factory index rose to 54.7 from 53.8 in June, the group said in its monthly report.

Readings higher than 50 indicate expansion. The index has shown expansion since May 2003.

Manufacturing growth accelerated in July driven by an upswing in production following June's increase in new orders,” said Norbert Ore, chairman of ISM’s manufacturing committee.

“Employment expanded after a one-month decline, while inventories grew after two months of contraction. The overall message is that manufacturing is proving to be quite resilient in the face of higher interest rates and weakening consumer spending,” he said.

ISM’s prices-paid index rose 2 points to 78.5. New orders, which make up about a third of the total index, fell 1.8 points to 56.1.

The production index, a measure of work being performed, rose 2.5 points to 57.6.

The employment index gained 2 points to 50.7. The inventories index jumped 3.6 points to 50.5.