ISM Preview: Slow and Steady

he Institute for Supply Management (ISM) Manufacturing Index for July will be released at 10:00 a.m. EST. Expectations are for a reading of 53.7 with a consensus range from 53.0 to 54.5, according to Bloomberg News. This is just slightly better than last month's reading of 53.5. The ISM manufacturing composite index is a diffusion index calculated from a monthly survey of purchasing managers at roughly 300 manufacturing firms nationwide. It is constructed so that any level at 50 or above signifies growth in the manufacturing sector. The ISM Index has been stuck in a sideways range this year, with readings bouncing between 51.50 and 53.50, with last month's reading of 53.50 marking the high so far this year. According to Bloomberg, export weakness has been the biggest drag on the ISM, with the strong dollar having negative effect on the export order component. Oil and gas shows continued weakness as well. The expected number of 53.7 still indicates slow growth, and will mark the 30th consecutive month of a reading greater than 50. In front of the ISM, S&P 500 futures are showing moderate losses.