Pace of manufacturing activity in US likely quickened in July

US manufacturing expansion that began in January 2013 likely continued last month, with the pace of expansion accelerating from June's reported clip. 

"Available district Federal Reserve Bank and regional purchasing manager canvasses suggest that the Institute for Supply Management's (ISM) activity barometer likely edged one point higher to 54.5 last month, eclipsing the average 52.6 reading posted over the May-June span", says Societe Generale.


Real GDP growth in the neighborhood is projected to be 3.4% annualized. With the Bureau of Labor Statistics' (BLS) update on the employment situation slated for release at the end of the week, the employment diffusion index probably will receive considerable attention in the ISM's report. 

"Regional employment soundings suggest that the ISM's national gauge moved one point lower to 54.5, but held on to almost three quarters of June's reported improvement. Renewed softness in raw materials quotes point to the ISM prices-paid diffusion index at a three-month low of 47.5", added Societe Generale.