The ISM Prices Index registered 59 percent in July, 9 percentage points lower than the 68 percent reported in June. This is the third consecutive month the Prices Index has registered below 80 percent since December 2010, and is the 25th consecutive month the index has registered above 50 percent. While 35 percent of respondents reported paying higher prices and 17 percent reported paying lower prices, 48 percent of supply executives reported paying the same prices as in June. A Prices Index above 49.4 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Index of Manufacturers Prices.
Of the 18 manufacturing industries, 10 report paying increased prices during the month of July, in the following order: Nonmetallic Mineral Products; Paper Products; Petroleum & Coal Products; Machinery; Chemical Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Transportation Equipment; and Primary Metals. The three manufacturing industries reporting paying lower prices on average in July are: Miscellaneous Manufacturing; Fabricated Metal Products; and Food, Beverage & Tobacco Products. Five industries reported no change in prices for the month of July compared to June.