ISM Index at 50.2 in June From 49.6 in May

The overall economy grew for the 80th straight month, while the manufacturing sector expanded after four months of contraction, the Institute for Supply Management reported yesterday.

According to the ISM’s monthly report on business, the ISM index gained to 50.2 in June from 49.6 in May.

Economists polled by IFR Markets predicted the index would slip to 48.7.

“The manufacturing sector showed a slight improvement in June as the PMI registered above 50% after four months of decline,” said Norbert J. Ore, chairman of the Institute of Supply Management’s manufacturing business survey committee. “While the PMI indicates minimal change is taking place month over month, that is hardly the situation. When viewed from the manufacturer’s perspective, they are experiencing higher prices for their inputs while demand for their products is slowing.”

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