August PMI hits 59%, highest reading in three years. The August PMI registered 59%, an increase of 1.9% from July’s reading of 57.1%, according to the Tempe, Ariz.-based Institute for Supply Management’s (ISM) Manufacturing Business Survey Committee. This month’s PMI is the highest reading since March 2011 when the index registered 59.1%. Any figure above 50% indicates expansion in the manufacturing environment.
Conference Board’s Leading Economic Indicators continue bullish trend in July. The Conference Board’s Leading Economic Index (LEI) for the U.S. increased 0.9 percent in July to 103.3 (2004 = 100), following a 0.6 percent increase in June, and a 0.6 percent increase in May. “The LEI improved sharply in July, suggesting that the economy is gaining traction and growth should continue at a strong pace for the remainder of the year,” said Ataman Ozyildirim, an economist at The Conference Board. “Although housing has been one of the weakest components this year, the sharp gain in building permits helped boost the LEI in July. Financial markets and labor market conditions have also supported recent gains, but business spending indicators remain soft and their contribution marginal.”
“The pace of economic activity remained reasonably strong in July,” said Ken Goldstein, another economist at The Conference Board. “Although retail sales were a little disappointing, hiring and industrial activity improved. July’s increase in the LEI, coupled with its accelerating growth trend, points to stronger economic growth over the coming months.”
Orders for cutting tools remain healthy but dip in July. July U.S. cutting tool consumption totaled $170 million, according to the U.S. Cutting Tool Institute and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report (CTMR) collaboration, was down 1.1% from June’s total but up 1.5% from July 2013. Brad Lawton, chairman of AMT’s Cutting Tool Product Group, said, “Cutting tool consumption continues to contribute to the industry’s stability. Having remained strong for the sixth consecutive month, these figures reassure our confidence in the current market conditions.”