By Ovunc Kutlu
ISTANBUL (AA) - The US manufacturing sector contracted in July for the fourth consecutive month, according to a report released Thursday by the Institute for Supply Management (ISM).
The ISM manufacturing purchasing managers' index (PMI) came in at 46.8% in July – down 1.7 percentage points from 48.5% in June.
The market expectation for the index, based on replies from purchasing and supply executives in more than 400 industrial firms, was to come in at 48.8%. While a reading above 50 indicates growth, below that level shows contraction.
The figure also marked the 20th contraction in the last 21 months.
"U.S. manufacturing activity entered deeper into contraction," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee. "Demand was weak again, output declined, and inputs stayed generally accommodative."
"Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and other conditions," he added. "Production execution was down compared to June, likely adding to revenue declines, putting additional pressure on profitability."