It’s that time of month again.  The time when ISM releases the  Manufacturing index for the month prior.  The ISM numbers show the rate of growth of 18 different manufacturing industries in the U.S.  The economists who were polled by Thomson Reuters, predicted a reading of 54.1. However, the actual reading came in better than expected at 55.5.  In total, 10 of the 18 industries reported growth this month.  The rate came in slightly lower than the figure in June, which was 56.2.

The Stock market here in the U.S. was already positive on the earnings of several European banks.  With the manufacturing number higher than the market had expected, stocks climbed even more.  The Dow Jones Industrial Average is up 176 points at the time of this news release.  The NASDAQ has risen 39 points and the S&P 500 is up 20 points.  This is after an already solid month of July for the markets.

The Manufacturing Index is a key variable in determining the overall health of the economy.  A number greater than 50 indicates that there is growth.  Although 55.5 does not indicate tremendous growth, it does show that the economy is still on the rise.