US manufacturing sector suffers first contraction in seven months

The US manufacturing sector faced a downturn in July, as reported by the S&P Global US Manufacturing PMI.

The index fell to 49.6, down from 51.6 in June, indicating a slight contraction. This marks the first decline in seven months, with new orders dropping at the fastest rate this year.

Market demand weakened, and new export orders also saw a decline, particularly from Canada.

Despite a marginal increase in production, the drop in new orders led to slower employment growth and a buildup in finished goods inventories.

Input costs continued to rise, but output prices increased at the slowest pace in a year.

The slowdown in purchasing activity and a cautious outlook reflect a broader hesitation amid economic uncertainties and the upcoming Presidential Election.

Attribution: S&P Global US Manufacturing PMI