National manufacturing index climbs in June

A key gauge of U.S. manufacturing activity rose in June to reach its highest level in 16 months, according to the latest Manufacturing ISM Report On Business, issued July 1 by the Institute for Supply Management (ISM). The ISM’s benchmark purchasing manager’s index (PMI) rose to 53.2 last month, from May’s reading of 51.3. An index […]

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A key gauge of U.S. manufacturing activity rose in June to reach its highest level in 16 months, according to the latest Manufacturing ISM Report On Business, issued July 1 by the Institute for Supply Management (ISM).

The ISM’s benchmark purchasing manager’s index (PMI) rose to 53.2 last month, from May’s reading of 51.3. An index level above 50 indicates expansion in the nation’s factories, and the index has been above that mark for four straight months, the ISM said.

The institute’s new-orders index rose to 57 in June from the May reading of 55.7. The production index hit 54.7 last month, 2.1 percentage points higher than the May level of 52.6.

Of the 18 manufacturing industries that the ISM tracks, 13 reported growth in June in the following order: printing & related support activities; textile mills; petroleum & coal products; food, beverage & tobacco products; fabricated metal products; apparel, leather & allied products; paper products; miscellaneous manufacturing; computer & electronic products; chemical products; primary metals; machinery; and nonmetallic mineral products.

The three industries reporting contraction in June were: electrical equipment, appliances & components; transportation equipment; and plastics & rubber products.

The survey’s employment index increased to 50.4 percent in June from 49.2 percent in May. The prices index registered 60.5, a decrease of 3 percentage points from the May reading of 63.5, indicating higher raw materials prices for the fourth consecutive month, the ISM report said.

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