US manufacturing activity continued to cool in July as more factories dialled back production in the face of shrinking orders and rising inventories. The Institute for Supply Management’s gauge of factory activity eased to 52.8, the lowest level since June 2020, from 53 a month earlier, going by data released on Monday (Aug 1). Readings above 50 indicate expansion, and the latest figure compared with a median projection of 52 in a Bloomberg survey of economists. The group’s measure of production also fell to a more than 2-year low; its gauge of new orders remained in contraction territory for a second month. The figures highlight softer demand for merchandise as the economy struggles for momentum. “Panellists are now expressing concern about a softening in the economy, as new order rates contracted for the second month amid developing anxiety about excess inventory in the supply chain,” said Timothy Fiore, chair of ISM’s Manufacturing Business Survey Committee. The ISM factory inventories index rose to 57.3, the highest since 1984 and suggesting stockpiles are mounting at more manufacturers. While many producers have been