Share this article

print logo

Local manufacturers say growth was strong in July

Buffalo Niagara manufacturers are on a prolonged growth spurt.

With production rising, hiring on the upswing and new orders steadily flowing in, business at the region's manufacturers improved for the 11th straight month during July, a new survey of local purchasing managers found.

The July gain was further evidence of an upswing at local manufacturers that has reversed a seven-month slump in mid-2016.

"The numbers for July were not quite as positive as those for June but were still good overall," said Randall Cragun, the Niagara University economist who tracks local manufacturing activity for the Institute of Supply Management – Buffalo.

 The purchasing managers report is one of the most timely economic indicators, offering a glimpse at how the manufacturing sector performed during the previous month, but the local index also can be quite volatile month to month. The July report put the pace of the expansion at local factories at its second-fastest pace since January 2015, although the growth rate cooled slightly from the 2 1/2-year high set in June.

The survey of local purchasing managers showed that its business activity index slipped to 70.9 in July from 72.7 in June – its highest reading since January 2015.  Any time the index drops below 50, it’s a sign that the manufacturing economy is weakening. It's a sign of growth when it tops 50.

The July report showed strength in nearly all segments of the survey, with production rising rapidly, while the flow of new orders and the pace of hiring both continued to grow, although at a slightly slower pace than in June. Inventories also grew at a slightly faster pace, while the one sobering note in the report was a continued rise in commodity prices.

There are no comments - be the first to comment