ISM in contraction territory for second month in a row
For the second month in a row, the ISM manufacturing index printed below 50. The July ISM manufacturing index came in at 49.8 in July. That’s up just marginally from the 49.7 reading in June. The last time that the ISM manufacturing index came in below 50 for two months in a row was at the tail end of the last recession (June & July 2009). Keep in mind that a below 50 reading on the ISM is not consistent with recession levels but rather a contraction in the manufacturing sector. A recessionary level on the ISM is approximately 45.
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