US final July S&P Global manufacturing PMI 49.0 vs 49.0 prelim

• Prior was 46.3
• Despite
  a sharp fall in backlogs of work as new orders dropped,
  companies expanded employment at a faster rate amid
  greater confidence in the outlook for output.
• New
  export orders fell for the fourteenth month running

There was no change from the preliminary reading. The ISM number at the top of the hour is expected at 46.8 from 46.0 previously.

Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence, said:

“Manufacturing continues to act as a drag on the US
economy, the recent spell of malaise persisting at the
start of the third quarter. However, producers are clearly
shrugging off recession fears and planning for better
times ahead.

“The sector continued to suffer from lower demand,
as a post-pandemic shift in spending from goods to
services, and an ongoing trend of cost-focused inventory
reduction, led to a further drop in orders. The overall rate
of order book decline nevertheless moderated during
the month, helped by a slower decline in exports, to help
stabilize production.

“There were several other encouraging bright spots in the
survey, most notably including a marked improvement
in business expectations for output in the year ahead.
Firms are therefore anticipating the current soft patch
to soon pass, and importantly are hiring more staff as
a result.

“There was also good news on the inflation front. The
combination of weak demand and improved supply led
to a further “buyers’ market” for many goods. Prices
charged for goods consequently barely rose for a third
straight month, which should help subdue consumer
price inflation in the near term.

I have been looking for green shoots in manufacturing and there are more signs here.