A key index of US manufacturing by the Institute for Supply Management tumbled to 50.5 in July from 56.2 a month earlier. The index, in which any figure over 50 shows growth, indicates that manufacturing activity is expanding but at a sluggish pace.
'The growth in manufacturing activity decelerated during July,' said ISM survey chairman Norbert Ore.
Ore said purchasing and supply executives indicate a mixed picture for manufacturing, with some saying that business is improving, but questioning whether it will continue. Others are experiencing declines and question if we have hit the bottom.
The ISM said concerns over energy costs seem to have abated while the steel tariffs slapped on many imports to protect the ailing US industry 'are seemingly presenting problems to a number of industries - steel fabricators in particular.'
'Steel price increases are drawing a lot of attention from supply managers and, while energy prices have moderated, they are still a concern,' Ore stated. 'Textiles, primary metals, furniture and transportation and equipment report a strong upswing in hiring during July,' he added.
