July US S&P Global manufacturing PMI 49.6 vs 49.5 prelim

• Prelim was 49.5
• Prior was 51.6
• Full report

Details:

• New orders decline for first time in 3 months
• Output growth slows to marginal pace
• Employment rises at softest rate since January
• Selling price inflation eases to one-year low
• The ISM manufacturing report is due at the top of the hour

Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence, said:

“The manufacturing recovery moved into reverse in July,
though the gloomier growth picture was accompanied
by a marked cooling of inflation in the goods-producing
sector.

“Business conditions worsened in July as the first
fall in new orders since April caused a near-stalling of
production. Purchasing activity is falling and hiring has
slowed amid concerns over weaker-than-anticipated
sales.

“Many firms are expecting the weakness to be temporary,
linked to paused spending and investment ahead of the
Presidential Election. However, firms’ expectations for
output in one year’s time remain subdued by historical
standards, reflecting additional concerns over the
impact of higher interest rates and persistent inflation.
While orders for investment goods such as plant and
machinery fell especially sharply in July, underscoring
the recent pull-back in capital spending, producers of
consumer goods also reported a modest fall in demand.

“There was better news on the inflation front. Input cost
inflation cooled for a second month after having risen to
a 13-month high in May. This welcome lowering of cost
pressures helped take further heat out of selling price
inflation, which moderated sharply in July to the lowest
for a year to signal only a marginal increase in prices
during the month. This near-abeyance of producer price
inflation should feed through to lower consumer price
inflation in the coming months.”

This article was written by Adam Button at www.forexlive.com.