ISM's price index falls below 50.0 (50 is "neutral")......................................
But ... everyone knows there's inflation; so who care about yet another data point showing no inflation pressure ?
Jon.
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August 1, 2005 10:14 a.m.
U.S. Factories Steam Ahead As Orders, Production Rise
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
U.S. factory activity picked up last month, a private research group reported, as new orders and production rose, hiring perked up, and price pressures eased.
The Institute for Supply Management said its July index of manufacturing activity rose to a reading of 56.6 from 53.8 reading posted in June. Any index reading above 50 indicates expansion in the sector.
"It appears that the sector hit a low point in May, and has rebounded nicely in June and July," said Norbert Ore, chairman of the ISM's manufacturing survey committee, in a statement. He noted that new orders, which rose to a reading of 60.6 from 57.2 in June, and production, which jumped from 55.6 to a robust 61.2 reading in July, continued to drive improvement in the sector.
An index of prices in the ISM's report slid into negative territory, registering a reading of 48.5 after coming in at 50.5 in June. Mr. Ore said July's reading "indicates that pricing power, at least for the short term, is now once again favoring buyers."
An index of employment rose to 53.2 after coming in at 49.9 in June.
Separately, U.S. construction spending turned down unexpectedly during June, taking its fourth consecutive drop as residential outlays slid in spite of the hot housing market. Total spending decreased 0.3% to a seasonally adjusted annual rate of $1.093 trillion, the Commerce Department said. Spending fell 1.7% in May to $1.096 trillion; it was originally seen down 0.9% to $1.103 trillion.
June residential construction spending fell by 0.4% to $609.1 billion. Spending decreased 3.5% in May; it was originally seen down 1.7%. Nonresidential spending eased 0.1% in June. Outlays for communication facilities climbed but fell for the large category of roads as well as for manufacturing and amusement.
Private-sector construction outlays decreased 0.2% to $843.8 billion. Public, or government, construction spending fell 0.5% to $249.2 billion. Federal government construction outlays increased by 4.9%, but state and local spending -- much larger than federal spending in dollars -- fell 0.8% to $232 billion.
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