Economic activity in the manufacturing sector expanded in June for the 13th consecutive month, and the overall economy grew for the 61st consecutive month, according to the Manufacturing ISM Report On Business issued July 1 by the Institute for Supply Management. While the report shows overall economic growth from May 2014, that growth comes at a slower rate.
The report is based on data compiled from purchasing and supply executives nationwide, including new orders, production, employment, supplier deliveries, inventories, prices, backlog of orders, exports and imports.
The June PMI (purchasing managers index) registered 55.3 percent, a decrease of 0.1 percentage point from May's reading of 55.4 percent, indicating expansion in manufacturing for the 13th consecutive month.
The New Orders Index registered 58.9 percent, an increase of 2 percentage points from the 56.9 percent reading in May, indicating growth in new orders also for the 13th consecutive month.
The Production Index registered 60 percent, 1 percentage point below the May reading of 61 percent.
Employment grew for the 12th consecutive month, registering 52.8 percent, the same level of growth as reported in May.
Inventories of raw materials remained at 53 percent, the same reading as reported in both May and April. The price of raw materials grew at a slower rate in June, registering 58 percent, down 2 percentage points from May.??
Performance by Industry
Of the 18 manufacturing industries, 15 are reporting growth in June in the following order: Furniture & Related Products; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Machinery; Fabricated Metal Products; Computer & Electronic Products; Transportation Equipment; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Wood Products; Printing & Related Support Activities; Petroleum & Coal Products; Primary Metals; and Paper Products.
The three industries reporting contraction in June are: Textile Mills; Chemical Products; and Plastics & Rubber Products.
The next report featuring July 2014 data will be released on Aug. 1 on the ISM website.
|Source: Institute for Supply Management|