Preliminary 53.8. Last month 53.9Key TakeawaysPMI unchanged at 53.9, signaling continued but steady manufacturing expansion.Output growth slowed to its weakest pace since March.New orders softened for the third consecutive month.Export demand remained weak, hurt by tariffs and subdued global demand.Supply chain disruptions intensified, with vendor delays among the worst in four years due to Middle East-related disruptions.Input costs and selling prices continued to rise, although inflation pressures eased modestly.Hiring remained subdued, while backlogs edged higher because of material shortages.Business confidence weakened to its lowest level since October 2025 amid concerns over inflation, supply constraints, and slowing sales.The report paints a picture of a manufacturing sector that is still expanding but losing momentum. Growth remains supported by domestic demand, but persistent supply chain disruptions, elevated costs, weaker export demand, and declining business confidence suggest the sector is becoming more vulnerable heading into the second half of the year.Chris Williamson, Chief Business Economist at S&PGlobal Market Intelligence“Although the headline PMI held steady in July, beneaththe survey we see some warning signs about the futuregrowth trajectory. Production rose at a markedly slowerrate in July, linked to a third month of weakened growthof new business, in turn reflecting reduced inventorybuilding after the especially strong precautionary stockaccumulation reported in the second quarter. Furtherpressure came from increased supply chain delays,falling exports, and further pushback on high prices fromcustomers.While input cost inflation moderated slightly,inflationary pressures remained elevated thanksprincipally to the combination of high energy prices andtariffs. In response, producers are either trying to raiseselling prices to protect margins or boost productivity,hence July also saw another month of high factory gateprice inflation and subdued job gains.In this environment, business optimism about growthprospects slipped to the lowest since last October,underscoring the downside risks to the near-termoutlook.”Despite the warnings of future growth trajectory, US stocks are higher with Nasdaq now up about 1%, the S&P is up 0.82% and the Dow is up 1.22% led by:Microsoft (MSFT):+5.40%Amazon (AMZN):+5.29%Salesforce (CRM):+4.90%Boeing (BA):+4.11%Sherwin-Williams (SHW):+3.58% This article was written by Greg Michalowski at investinglive.com.