July Manufacturing ISM Report On Business®; PMI at 50.9%; Production and Employment Growing; Supplier Deliveries Slower; New Orders and Inventories Contracting

Customers’ Inventories(c)

The ISM Customers’ Inventories Index registered 44 percent in July, 3 percentage points lower than in June when the index registered 47 percent. This is the 28th consecutive month the Customers’ Inventories Index has been below 50 percent, indicating that respondents believe their customers’ inventories are too low at this time.

The two manufacturing industries reporting customers’ inventories as being too high during July are: Apparel, Leather & Allied Products; and Fabricated Metal Products. The 10 industries reporting customers’ inventories as too low during July — listed in order — are: Petroleum & Coal Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Transportation Equipment; Printing & Related Support Activities; Paper Products; Machinery; Computer & Electronic Products; Electrical Equipment, Appliances & Components; and Chemical Products. Six industries reported no change in customers’ inventories for the month of July compared to June.

Customers’ Inventories          

%
Reporting

   

%Too
High

   

%About
Right

   

%Too
Low

    Net     Index
 
Jul 2011 72 11 66 23 -12 44.0
Jun 2011 70 13 68 19 -6 47.0
May 2011 72 6 67 27 -21 39.5
Apr 2011 73 9 63 28 -19 40.5

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