Afternoon Coffee: ISM Reports US Manufacturing Sector Expanded in July, Large Oil Supply Pushes Prices Down

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The US manufacturing sector expanded in July. The Institute for Supply Management July PMI registered at 52.7% – a 0.8% drop from the June reading, but it still signals growth in the industry.

An excess supply of oil has caused oil prices to fall again this morning. Brent dropped 3.4% to $50.46 a barrel and light, sweet crude oil prices for September delivery sank 1.9% to $46.21 a barrel, which is within $3 from the 6-year low hit in March.

US consumer spending increased 0.2% in June, the slowest rise in 4 months. The sluggish growth is due to a lack of demand for automobiles.

Automobile sales in July grew, however, putting the industry on pace to have its best year since 2001. Ford, for instance, recorded 1.55 million vehicle sales in July, a rise of 6% from the previous month.

 

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