economy
Manufacturing survey shows inflation worries 'worse than pandemic era,' adding to Fed pressure
The commentary pointed to a highly volatile environment in which purchasing managers were struggling to stay ahead
TL;DR
- The Institute for Supply Manufacturing reported its fastest pace of growth in over four years in July, with an index reading of 55.6.
- Strong gains were seen in new export orders, backlogs, and production, while the employment gauge hit its highest since August 2022.
- Nearly three-quarters of respondents reported rising prices for the 22nd consecutive month.
- Purchasing managers are struggling with volatility due to events like the Iran war and tariffs, with some calling the current situation worse than the pandemic.
- The solid economic picture and ongoing price pressures may lead the Federal Reserve to increase interest rates soon.
- Analysts predict that continued inflation pressure will likely force the Fed's hand, potentially leading to a rate hike at the September FOMC meeting.