U.S. manufacturing activity in July slowed for the second month, albeit less than had been expected, amid news that supply constraints were easing, according to a report by the Institute for Supply Management (ISM) released on Aug. 1.
The post–pandemic glut in inventories and a growing trade deficit caused by global supply chains are key culprits, though overall economic momentum has slowed down after the economy contracted 1.3 percent in the first half of the year.
The ISM’s index dropped by 0.2 percent, to 52.8 percent, the lowest reading since June 2020, from a reading of 53.0 percent in June, above the earlier forecast of 52 percent….