Textile raw material prices continue to rise
U.S. sourcing officials shared their thoughts on commodity prices in the latest ‘Report of the ISM Institute of Manufacturing for Supply Management (ISM) in business. Those in the textile industry reported a continuous increase in the price of raw materials.
The ISM price index recorded 60% in July, 18.5 percentage points lower than June’s reading of 78.5%, indicating that commodity prices rose for the twenty-sixth consecutive month, although at a much slower pace.
The price index has been at or above 60% for 23 consecutive months. The month-over-month decline of 18.5 percentage points is the fourth largest decline on record (since 1948) and the largest since a 22.1 percentage point drop in June 2010.
“The slowdown in price increases is due to volatility in energy markets, slowdown in copper, steel, aluminum and corrugated markets and a significant drop in demand for chemicals “, explained Timothy Fiore, president of the Institute for Supply Management Manufacturing Business Survey. Committee.
Notably, 21.5% of respondents said they paid lower prices in July, compared to 8.3% in June,” Fiore continued. A price index above 52.6%, over time, generally corresponds to an increase in the Bureau of Labor Statistics (BLS) producer price index for intermediate materials.
In July, 12 of 18 industries reported paying higher prices for raw materials, including textile mills.
Despite this, 11 manufacturing industries recorded growth in July, with apparel, leather and related products registering the strongest growth of these industries. Textile mills also recorded growth.
Overall, the manufacturing PMI for July recorded 52.8%, down 0.2 percentage points from 53% in June. The figure indicates an expansion of the overall economy for the 26th consecutive month after a contraction in April and May 2020. It is the lowest figure for the manufacturing PMI since June 2020, when it recorded 52.4 %.
Meanwhile, the new export orders index of 52.6% is up 1.9 percentage points from June’s figure of 50.7%.