ISA Distributor & Manufacturer Growth Decreases in July - Modern Distribution Management

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ISA Distributor & Manufacturer Growth Decreases in July

Distributor Index decreased to 44.9 and Manufacturer Index decreased to 48.6.
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The Manufacturer Index and Distributor Index both fell below 50 for the first time in 2016, indicating a contracting economy, according to the August Economic Indicator Report from the Industrial Supply Association. The ISA Distributor Index decreased to 44.9 in July from 60.4 in June, while the Manufacturer Index decreased to 48.6 from 59.1.

"Business appeared to have suffered as a result of two fewer working days in July 2016 compared to July 2015," said Bryon Shafer, general manager of ASG Industrial and chair of ISA’s Strategic Information Committee. "However, that serves as only a partial explanation for the slowdown. Member comments indicated that the July results were the lowest in several years."

For each index, a reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.

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