Manufacturing continues its growth in June

Source: ISM

Jul 26, 2011

Economic activity in the manufacturing sector expanded in June for the 23rd consecutive month, and the overall economy grew for the 25th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The PMI registered 55.3%, an increase of 1.8 percentage points from May, indicating expansion in the manufacturing sector for the 23rd consecutive month. New orders and production were both modestly up from last month, and employment showed continued strength with an increase of 1.7 percentage points to 59.9%. The rate of increase in prices slowed for the second consecutive month, dropping 8.5 percentage points in June to 68%. This follows a similar reduction of 9 percentage points in the Prices Index in May, and is the lowest figure since August 2010 when the index registered 61.5%. While the rate of price increases has slowed and the list of commodities up in price has shortened, commodity and input prices continue to be a concern across several industries."

Of the 18 manufacturing industries, 12 are reporting growth in June, in the following order: Miscellaneous Manufacturing; Printing & Related Support Activities; Computer & Electronic Products; Paper Products; Textile Mills; Petroleum & Coal Products; Nonmetallic Mineral Products; Transportation Equipment; Chemical Products; Fabricated Metal Products; Machinery; and Electrical Equipment, Appliances & Components. The five industries reporting contraction in June are: Plastics & Rubber Products; Apparel, Leather & Allied Products; Primary Metals; Wood Products; and Food, Beverage & Tobacco Products.

JUNE 2011



PMI 55.3 53.5 +1.8 Growing Faster 23
New Orders 51.6 51.0 +0.6 Growing Faster 24
Production 54.5 54.0 +0.5 Growing Faster 25
Employment 59.9 58.2 +1.7 Growing Faster 21
Supplier Deliveries 56.3 55.7 +0.6 Slowing Faster 25
Inventories 54.1 48.7 +5.4 Growing From Contracting 1
Customers' Inventories 47.0 39.5 +7.5 Too Low Slower 27
Prices 68.0 76.5 -8.5 Increasing Slower 24
Backlog of Orders 49.0 50.5 -1.5 Contracting From Growing 1
Exports 53.5 55.0 -1.5 Growing Slower 24
Imports 51.0 54.5 -3.5 Growing Slower 22
OVERALL ECONOMY Growing Faster 25
Manufacturing Sector Growing Faster 23

Read the complete Manufacturing ISM Report On Business
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