Data Show Manufacturing Downturn Nearing End

Washington, DC, Aug. 3, 2009--Conditions for the nation's manufacturers continued to improve in July, the Institute for Supply Management reported Monday.

The ISM index rose to 48.9% in July from 44.8% in June. The July index is the strongest since September.

The consensus forecast of estimates was for the index to rise to 46.2%. Readings below 50 indicate contraction.

Below the headline, the report was strong. The data is showing that the manufacturing downturn is coming to an end. Both production and new orders rose above 50%. The ISM index has been improving slowly since hitting a low of 32.9% in December. The index was last above 50% in January 2008.