US ISM manufacturing PMI slips below forecasts in July

US manufacturing sector growth slowed further last month according to the results of perhaps the most closely-followed gauge for the space.

The Institute for Supply Management factory Purchasing Managers' Index slipped from June's level of 51.7 to 51.2 for July, contrary to economists' expectations for a small rebound to 52.0.

Almost all the main gauges retreated, amid responses from multiple surveys highlighting either weaker growth or the impact that trade tariffs were beginning to have on them.

The biggest drop was seen in the sub-index tracking firms' production levels, which fell from 54.1 to 50.8, alongside a fall in that linked to employment from 54.5 to 51.7, although a sub-index linked to new orders improved from 50.0 to 50.8.

Price pressures also decreased, with the prices paid sub-index falling back further, from 47.9 to 45.1.

A sub-index for order backlogs meanwhile retreated from 47.4 to 43.1 and that for new exports orders slipped from 50.5 to 48.1.

Among survey participants' responses, one executive from the automotive sector said that sales were continuing to decline, leading his company to lower its forecasts with attention increasingly on cost cuts as opposed to sales price.

Another from the Chemical Products sector said that weakness in end markets was "accelerating rapidly", while one from the Computer&Electronic Products space said that "China tariffs continue to be a concern. The uncertainty of future tariffs involving China, Canada, and Mexico is also a concern.

"China tariffs for electronic parts are averaging 17 percent.”