ISM Index Rises to 53.5 in June

The overall economy grew for the seventy-third straight time, while the manufacturing sector expanded for the thirtieth consecutive month, the Institute for Supply Management reported Wednesday.

According to the ISM's monthly report on business, the ISM index increased to 53.5 in June from 52.8 in May.

Economists polled by Thomson Reuters predicted the index would rise to 53.1.

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 held at 49.5. The employment index grew to 55.5 from 51.7.

The production index slipped to 54.0 from 54.5, the new orders index grew to 56.0 from 55.8; the supplier deliveries index fell to 48.8 from 50.7; the export orders index decreased to 49.5 from 50.0; and the imports index slid to 53.5 from 55.0.

The inventories index increased to 53.0 from 51.5; the customers' inventories index gained to 48.5 from 45.5; and backlog of orders fell to 47.0 from 53.5.

Respondents' comments included:

"Avian flu is having a huge effect on egg pricing and items manufactured with eggs." (Food, Beverage & Tobacco Products)

"Automotive industry remains strong and is expected to stay that way through 2015." (Fabricated Metal Products)

"Business continues to hold in the U.S., [but is] soft in Europe and in decline in Asia." (Transportation Equipment)

"Manufacturing business has improved slightly." (Chemical Products)

"Slight improvement in defense spending on future business." (Computer & Electronic Products)

"Most prices are stable and business is stable." (Nonmetallic Mineral Products)

"Downturn in oil and gas markets impacting demand." (Miscellaneous Manufacturing)

"Stable. Extra capacity available if more orders come in." (Textile Mills)

"A bit slow. Sales down from last year." (Machinery)

"Business continues to be strong, with housing starts being up in our markets driving cabinet sales." (Furniture and Related Products)

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