Global business news twenty four hours a day. If Bloomberg dot Com the radio plus Globile lapp and on your radio. This is a Bloomberg business flash from Bloomberg World Headquarters. Charlie held out the down in SMP both lower, NEZ SNAK is higher up four tens of one percent. We've got the tenure down eleven thirty seconds. That yield one point four nine percent gold up to sixty ounce. The thirteen fifty five a game there are two tens of one percent. Stocks of being a move to lower via
a route in energy producers. Crude oil plunging through forty of barrel for the first time since April. Crude is now down four percent at thirty nine ninety two, a drop right now of a dollar sixty eight a barrel on West Texas Intermediate SMP down three to one seventy had dropped there of two tens of one percent. The down down thirty nine points, have got there of two tens of one percent. NAZ stack up nineteen a gain of four tens of one percent. I'm Charlie Pellett, and
that's a bad business flash. This is taking stock with Kathleen Hayes and Pim Fox on Bloomberg Radio. The Institute for Supply Management the US factory sector de'ccelerating modestly in July but posting a fifth consecutive month of growth. What does this all mean? Well, that's why we have Brad Holcombe. He is the chairman of the Institute for Supply Management and he joins us from Tempe, Arizona. Brad, thanks very much for being with us. Tell us about new orders
and production. They're both growing, aren't they? Well, they are, and as you mentioned, the p m I is off just over a half a point, but still pretty consistent with what we've seen for the fast few months. New orders is leading the way at fifty six point nine is down a tenth of a point, still a very strong number, supported by a number of our our largest industries.
And production is up seven intensive a point. Uh to not only keep up with new orders, but it also had the opportunity to work into the backlog of orders, which is down four and a half percentage points to forty eight this month. Well, Brad, you know, bottom line, as long as the Purchasing Managers Institute that you at the Institute for Supply Management produced is above fifty, It signals expansion. And I'm on my Bloomberg now and I'm
you know, scrolling back and scrolling back. I mean, we haven't been below fifty probably since the the final months of the Great Recession. And even with the components that, you know, it's really hard to nickpicky, get nickpicky, except maybe for you know, the employment component felt just below fifty because production stayed strong, new orders eased off a bit, but still well above fifty. Do you see any sign
of a real cooling off here? No, I really don't, you know, And I really appreciate your comments, because it's hard to take issue with with the number set today. It looks a lot like last month, quite frankly, and as I said, the continuation of the trend for the last five to seven months on the employment one, you know, we expected to hang around fifty for the rest of the year, to end up with zero employment growth between now and the end of the year. It's just the
way the planning has gone. So there's nothing here that surprises me this month, and it's it all feels pretty consistent, as I said, with the trend set up this this year earlier. Brad does this seem consistent with the most recent GDP report of one growth. Actually, we would have you know, correlated and predicted higher between two and a half percent if we average January through July, and even three based on the July number. So the rest of the economy sort of you know, flanged up with us,
we'd be at higher numbers. Well, this is a very important question Pin puts on the table, because what we've gotten that GDP report is that the U S economy, especially after all the revisions going back to is now growing at a one percent year over year rate. It is steadily decelerated, even as your I S M index has held up. Does that mean I S index is no longer a good indicator for the broad economy or is it simply that it's just a good indicator for the part of the economy it makes up, which is
factories manufacturing. Well, that's particularly a good indicator of the manufacturing sector. But also, you know, in a couple of days we'll all see the non manufacturing report, and then together we represent the entire GDP from our perspective, and that is about seven professionals sitting in plants and and service companies across the company telling us actually what it looks like from inside the government numbers. You know, I'm not familiar with the process the revised from time to time.
We rarely have ever do that. So this is is, you know, his real data race based on a pretty broad survey, Bradam money, If you could tell us what some of the respondents have said to you, particularly if you'd like to begin with the plastics and rubber products, they seem to be a bit more optimistic. That's a plastic guests, plastic and rubber products industry. One of the comments was, seems to be a bit more optimistic in the markets, but US presidential race might dampen the mood.
Um personally, I don't necessarily agree with that. I think we've all factored that in. It is what it is. It's going to be one or the other, you know, and we'll see later on what that means. Brad. Going back again to the g P report, almost everything was negative. Um. Certainly any kind of construction, any kind of private investment was down. Another reason why it's kind of interesting and surprising maybe to see factories holding up so well, But
exports were also a small positive contributor. What which which companies that you survey who's doing well. On the exports side, exports is finished goods, um, so it covers you know, as pretty broad and let me just turn to that particular page. But again, exports is UH is finished goods,
whereas imports as raw materials. And in terms of what's uh, what's going and growing, paper products, computer and electronic products, fabricated metal products, food, beverage and tobacco, and transportation equipment as well as chemical products are on that list of growing in that category, Pratt just quickly. Commodities moving higher in price include copper that should be good for the industrial sector. Now well, yes, um, you know copper is actually on both lists up in price and down and
price as indicated by different respondents. It could be a timing issue, but generally speaking, the medals are going up in this time frame, all right, Brad Hope, and thank you so very much for joining us. From the Institute for Supply Management putting on its Purchasers Purchasing Managers Index. It's basically an index of manufacturing growing for the fifth straight month but decelerating. This is Bloomberg coming up on
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