by Bill McBride on 7/01/2016 10:10:00 AM
Friday, July 01, 2016
The ISM manufacturing index indicated expansion for the fourth consecutive month in June, following five months of contraction. The PMI was at 53.2% in June, up from 51.3% in May. The employment index was at 50.4%, up from 49.2% in May, and the new orders index was at 57.0%, up from 55.7% in May.
From the Institute for Supply Management: June 2016 Manufacturing ISM® Report On Business®
Economic activity in the manufacturing sector expanded in June for the fourth consecutive month, while the overall economy grew for the 85th consecutive month, say the nation's supply executives in the latest Manufacturing ISM®Report On Business®.Click on graph for larger image.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The June PMI® registered 53.2 percent, an increase of 1.9 percentage points from the May reading of 51.3 percent. The New Orders Index registered 57 percent, an increase of 1.3 percentage points from the May reading of 55.7 percent. The Production Index registered 54.7 percent, 2.1 percentage points higher than the May reading of 52.6 percent. The Employment Index registered 50.4 percent, an increase of 1.2 percentage points from the May reading of 49.2 percent. Inventories of raw materials registered 48.5 percent, an increase of 3.5 percentage points from the May reading of 45 percent. The Prices Index registered 60.5 percent, a decrease of 3 percentage points from the May reading of 63.5 percent, indicating higher raw materials prices for the fourth consecutive month. Manufacturing registered growth in June for the fourth consecutive month, as 12 of our 18 industries reported an increase in new orders in June (down from 14 in May), and 12 of our 18 industries reported an increase in production in June (same as in May)."
Here is a long term graph of the ISM manufacturing index.
This was above expectations of 51.5%, and suggests manufacturing expanded at a faster pace in June than in May.