The overall economy grew for the sixty-first straight time, while the manufacturing sector expanded for the thirteenth consecutive month, the Institute for Supply Management reported Tuesday.
According to the ISM's monthly report on business, the ISM index slipped to 55.3 in June from 55.4 in May.
Economists polled by Thomson Reuters predicted the index would rise to 55.9.
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 decreased to 58.0 from 60.0. The employment index held at 52.8.
The production index slipped to 60.0 from 61.0, the new orders index rose to 58.9 from 56.9; the supplier deliveries index fell to 51.9 from 53.2; the export orders index dropped to 54.5 from 56.5; and the imports index gained to 57.0 from 54.5.
The inventories index held at 53.0; the customers' inventories index remained 46.5; and backlog of orders decreased to 48.0 from 52.5.
Respondents' comments included:
- "Business volume is increasing at a good pace and consumers appear to be spending more." (Food, Beverage & Tobacco Products)
- "The strength of the automotive industry continues to drive the high demand for steel." (Fabricated Metal Products)
- "Business still very solid and strong - Class 8 Truck and RV." (Transportation Equipment)
- "Seasonal business remains strong." (Primary Metals)
- "Another strong month overall." (Computer & Electronic Products)
- "Outlook is better. General uptick in our company's confidence." (Chemical Products)
- "Orders are picking up, but pricing has declined in last month. Not the norm for this time of year." (Wood Products)
- "Conditions are slightly more favorable than last year." (Printing and Related Support Activities)
- "Business is picking up once again." (Machinery)
- "Business conditions are stable to improving." (Miscellaneous Manufacturing)
