U.S. manufacturing activity surged in June amid signs a strong economy and import tariffs were causing bottlenecks in the supply chain, resulting in factories taking longer to deliver goods to customers.
“It will take a lot to derail the U.S. economy because of the sugar high it’s on from the fiscal stimulus, but a developing trade war between the U.S. and its trading partners is a mounting threat,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pa.
The Institute for Supply Management (ISM) said its index of national factory activity jumped to a reading of 60.2 last month from 58.7 in May. A reading above 50 in the ISM index indicates an expansion in manufacturing.
Read the full story at theglobeandmail.com.