According to the Institute for Supply Management (ISM) July 2014 report, the manufacturing sector has expanded for the 14th consecutive month. The ISM also reported growth for the overall US economy for the 62nd consecutive month. In July, the purchasing managers index (PMI) saw an increase of 1.8 percentage points from June’s reading of 55.3 percent. July’s PMI reading is the highest since April 2011.
The majority of respondents to the ISM survey saw slow, but continued growth in their respective sectors and businesses. A respondent from the transportation equipment sector said, “Business is still very good and we are very optimistic for the rest of the year.” However, some sectors expressed concerns with the continued unrest in the European market. One respondent stated, “Geopolitics still present a considerable risk as well as the European market.”
For a deeper dive into the economic outlook for the manufacturing industry as well as the economy at large, register for the 15th Annual Manufacturing & Distribution Annual Seminar featuring noted economist Alan Beaulieu. Alan is one of the most informed economists in the country, providing economic forecasts with 94.7% accuracy so companies can improve their performance and profits. He is a principal at the Institute for Trend Research, the Senior Economic Advisor to the National Association of Wholesalers and a noted author and speaker.