U.S. manufacturing index unchanged in July

WASHINGTON, Aug. 1 (UPI) -- The Institute for Supply Management said Friday U.S. manufacturing activity in July was little changed from June and remains in slow contraction.

"Manufacturers indicate no change in overall business activity when comparing July to June," said Norbert Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

"This continues a trend biased toward relatively minor contraction established more than 12 months ago," he said.

In the month, the overall Purchasing Managers Index dropped slightly from 50.2, indicating marginal growth, to 50. New orders continued with contraction at 45 and production continued with slight growth at 52.9.

The index uses 50 as a break-even point with figures above indicating growth and figures below indicating contraction.

The employment index reversed a downward trend and rose from 43.7 in June to 51.9 in July and the export index continued 68 months of growth at 54.

While little has changed, "it would be hard to convince manufacturers who are faced with higher costs and uncertain demand that there is little change taking place," Ore said.