FINWIRES · TerminalLIVE
FINWIRES

July ISM US Manufacturing Index Rises From June

By

The Institute for Supply Management's US manufacturing index rose to 55.6 in July from 53.3 in June, compared with expectations for a smaller increase to a reading of 53.9 in a survey compiled by Bloomberg.

This is the highest reading since May 2022, ISM said.

There were increases in the readings for new orders, order backlogs, production and employment, but decreases in readings for inventories and prices.

"In July, US manufacturing activity remained in expansion territory, growing at its fastest rate in more than four years," said ISM Manufacturing Committee Chair Susan Spence.

The monthly national manufacturing reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.

An increase in the index further above 50 is considered a sign of a strong US manufacturing sector, generally a positive for manufacturing industry stocks. However, if that strength comes with rising input prices due to shortages, that could be a negative for stocks as well as bonds.

Related Articles

International

India's RBI Swap Facility Draws $40.8 Billion in Forex Inflows

India attracted $40.8 billion in foreign currency inflows under the Reserve Bank of India's concessional swap facility as of July 31, according to a Reserve Bank of India release on Friday.The inflows included $36.7 billion in FCNR(B) deposits, $2.6 billion in overseas foreign currency borrowings, and $1.5 billion in external commercial borrowings.The central bank launched the swap facility in June to encourage fresh inflows of foreign currency.

^BSENifty 50
International

Decreasing Diesel Prices Help Keep New Zealand Construction Cost Growth in Check, QV Says

A drop in diesel prices helped keep construction cost growth in check in New Zealand in July, QV said in a report on Monday.Diesel prices fell sharply month over month in July, declining nearly 21%, helping to reduce costs in fuel-intensive areas of construction work. Excavation, which fell 4.5%, saw the largest average reduction in both June and July."Diesel has fallen from June to July, and that saving has flowed through to some of the trades most exposed to fuel costs," QV CostBuilder spokesperson Martin Bisset said, adding that overall costs remained broadly stable.Concrete blockwork prices increased 0.8%, while concrete rose 0.9%, the report said. Expanded polystyrene sheet was up 9.3%, aquatherm pipework by 7.5%, and copper pipework by 4%.

^NZ50
International

New Zealand Property Values Continue Subdued Trend With 0.3% Fall in July, Cotality Says

New Zealand's home value index fell 0.3% in July following a decline of the same magnitude in the previous month, continuing a subdued trend observed during the first six months of the year, Cotality said in an Aug. 1 report.The national median property value of NZ$804,303 in July was down by 1% from three months ago and down 0.7% from a year earlier, according to the report.Values remain nearly 18% below their January 2022 peak, but 16% above the pre-pandemic level from March 2020, Cotality said."Property sales volumes have inched lower so far this year, although they're still at a relatively normal level," said Cotality NZ Chief Property Economist Kelvin Davidson. "But the stock of listings remains elevated and this is giving buyers the balance of power when it comes to pricing.""Mortgage rates haven't moved much in recent weeks, but the likelihood is that some rises are on the cards again in the short term," Davidson added.The report pointed to broad-based falls in values across Auckland's sub-markets in July, with Rodney and Papakura posting relatively modest drops of 0.2% and Franklin dipping by 0.3%. But in the country's other four main areas, there was a uniform drop of 0.6% in July.

^NZ50