ISM: Manufacturing, Overall Economy Gains In June

Economic activity in the manufacturing sector expanded in June with furniture at the forefront of the gain, and the overall economy grew for the 97th consecutive month, said the nation’s supply executives in the latest Manufacturing ISM Report On Business issued by Timothy Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

He said, in issuing the report, that the June Purchasing Manager’s Index registered 57.8%, an increase of 2.9 percentage points from the May reading of 54.9%. ISM’s New Orders Index registered 63.5%, an increase of 4 percentage points from the May reading of 59.5%. The Production Index registered 62.4%, up 5.3 percentage point versus the May reading of 57.1T. The Employment Index registered 57.2 percent, a gain of 3.7 percentage points from the 53.5% May reading.

Fiore added, “The Supplier Deliveries index registered 57%, a 3.9 percentage point increase from the May reading of 53.1%. The Inventories Index registered 49%, a decrease of 2.5 percentage points from the May reading of 51.5%. The Prices Index registered 55% in June, a decrease of 5.5 percentage points from the May reading of 60.5%, indicating higher raw materials’ prices for the 16th consecutive month, but at a slower rate of increase in June compared with May. Comments from the panel generally reflect expanding business conditions, with new orders, production, employment, backlog and exports all growing in June compared to May and with supplier deliveries and inventories struggling to keep up with the production pace.”

Of the 18 manufacturing industries addressed in the report, 15 reported growth in June in the order of Furniture & Related Products, Nonmetallic Mineral Products, Paper Products, Machinery, Electrical Equipment, Appliances & Components, Chemical Products, Transportation Equipment, Computer & Electronic Products, Food, Beverage & Tobacco Products, Plastics & Rubber Products, Printing & Related Support Activities, Fabricated Metal Products, Wood Products, Miscellaneous Manufacturing; and Petroleum & Coal Products. The three industries that reported contraction in June compared to May were Apparel, Leather & Allied Products, Textile Mills, and Primary Metals, ISM reported.