ISM manufacturing index 48.9 vs. 46.5 consensus

• ISM manufacturing sector rose to 48.9 in July, from 44.8 in June beating consensus estimates by 5% at 46.5
• The slower pace of contraction has been contributed by the turnaround in new orders jumping to 55.3 in July from 49.2 in June.
• Production also showed a notable improvement, growing at a faster face compared to the previous month. Production index rose to 57.9 in July from 42.5 in June.
• Employment index rose to 45.6 in July from 40.7 in June, but it continues to indicate a drop in employment in the manufacturing sector.
• Inventories index edged up to 33.5 in July from 30.8 in June.

"Overall, it would be difficult to convince many manufacturers that we are on the brink of recovery, but the data suggests that we will see growth in the third quarter if the trends continue.” – Norbert Ore (Chairman of the ISM Manufacturing survey)

Source: RTT News, WSJ & Barron's