US: ISM manufacturing index softens in July – Nomura

Analysts at Nomura note that the US ISM manufacturing index declined 2.1pp to 58.1 in July, the lowest reading since April 2018 and below expectations (Nomura and Consensus: 59.4).

Key Quotes

“The softening likely reflects a combination of tariff concerns and an unwinding of a distorted supplier deliveries index reading from June.”

“The softness in the report was relatively broad-based. The production and new orders indices fell 3.8pp to 58.5 and 3.3pp 60.2, respectively. Combined, they lowered the topline index by about 1.4pp. While still at levels indicating steady business expansion, the declines point to some pullback in the pace of growth.”