Washington (awp/afp) – The growth of manufacturing activity in the United States slowed a little in July, according to the index of the professional federation ISM, published Monday, and which falls, for the second month in a row, lowest since June 2020.
The index fell to 52.8%, a drop of 0.2 points compared to June, when growth had slowed sharply, recording then, already, its weakest expansion for two years.
July’s figure is better than expected, however, since analysts were expecting 52.1%, according to the consensus of analysts from MarketWatch.
And, as long as the index is above 50%, it means that activity is growing compared to the previous month.
In detail, the index measuring new orders is contracting, but that measuring supplier deliveries is improving. And the rise in prices is slowing down sharply, specifies the ISM in its press release.
Separately, companies “continue to hire at high rates, with little sign of layoffs, hiring freezes or downsizing,” but companies that responded to this survey “reported quit rates higher, reversing the positive trend of June”, commented Timothy Fiore, the head of this survey, quoted in the press release.
“Sentiment has remained bullish on demand,” he said, but companies that responded to this survey “are now expressing concern about a slowing economy as new orders contracted for the month. second month amid growing concern over excess inventory in the supply chain.”
Inventories, which represent a cost for businesses, have indeed piled up due to inflation. Because if the expenses of American consumers have continued to grow, it is mainly because of gasoline, housing and food, the prices of which have soared.
The gross domestic product (GDP) of the United States contracted between April and June, for the second quarter in a row, aggravating fears of recession.
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