ISM Index Gains to 53.2 in June

The overall economy grew for the eighty-fifth straight time, while the manufacturing sector expanded for the fourth month in a row, the Institute for Supply Management reported Friday.

According to the ISM's monthly report on business, the ISM index increased to 53.2 in June from 51.3 in May.

Economists polled by Thomson Reuters predicted the index would be 51.5.

An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.

The prices paid index slid to 60.5 from 63.5. The employment index rose to 50.4 from 49.2.

The production index climbed to 54.7 from 52.6, the new orders index grew to 57.0 from 55.7; the supplier deliveries index gained to 55.4 from 54.1; the export orders index increased to 53.5 from 52.5; and the imports index rose to 52.0 from 50.0.

The inventories index increased to 48.5 from 45.0; the customers' inventories index rose to 51.0 from 50.0; and backlog of orders gained to 52.5 from 47.0.

Respondents' comments included:

  • "We are gaining new customers through better sales management." (Food, Beverage & Tobacco Products)
  • "Slower shipments because of weather related flooding." (Chemical Products)
  • "Conditions have remained steady from [the] past month and are in line with our forecast." (Computer & Electronic Products)
  • "Very good start of summer for business levels/orders." (Fabricated Metal Products)
  • "Business is steady with some signs of increase." (Machinery)
  • "Business is still strong, but slowing slightly." (Transportation Equipment)
  • "Business conditions are good, production and demand are stable." (Miscellaneous Manufacturing)
  • "Orders are slowing from China. American customers still steady." (Primary Metals)
  • "Demand continues to be robust." (Plastics & Rubber Products)
  • "Business is still slower than expected." (Nonmetallic Mineral Products)
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