ISM manufacturing PMI improves, fastest industry expansion in 17 months - Business Insider

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US manufacturing grows at its fastest rate in 17 months, Institute for Supply Management says

A closely watched gauge of US manufacturing improved for the third month straight in July while still grappling with weak employment activity.

Its employment gauge gained to 44.3 from 42.1, remaining well below the threshold of 50 that indicates whether a sector is growing or shrinking. Readings above 50 indicate industry growth, while those falling below the threshold signal contraction. ISM's employment metric remained deep in contractionary territory, climbing to 44.3 last month from 42.1. 'The stock market can drop as much as 80%': A 47-year market vet explains why we're in the midst of a global bust — and makes a case for $10,000 gold

"This does not mean the recovery in the manufacturing sector is complete," Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note. "The extreme weakness of business capital spending means that a full recovery in manufacturing is a long way off."

 

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PMIs: perpetually misleading indicators?

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