TEMPE, Ariz. – U.S. manufacturing picked up speed in June, expanding for a fifth straight month, while the overall economy grew for a 68th consecutive month, according to a report today from the Institute for Supply Management.
The national Purchasing Managers Index rose to 56.0 from 55.0 in May and 54.7 in April as the manufacturing sector continued to pick up speed. (Readings higher than 50 indicate expansion.) The reading exceeded the median forecast of 77 economists surveyed by Bloomberg News, who predicted a June PMI of 55.0.
“Following a weak first quarter, the manufacturing sector rebounded in a strong fashion during the second,” wrote Norbert J. Ore, chair of the ISM Manufacturing Business Survey Committee.
“In June, manufacturing expanded at its fastest pace since April 2006 when the PMI Index registered 56.9,” he added. “This performance appears sustainable in the third quarter due to the current strength in new orders and production.”
The ISM’s index of prices paid continued to decline, falling to 68.0 in June from 71 in May and 73 in April. Analysts had expected the gauge to fall to 69.1.
“The manufacturing cycle continues to swing higher,” Dean Maki, chief U.S. economist at Barclays Capital in New York, told Bloomberg News. “This is a sustained improvement that we expect will continue into the second half. It’ll be a source of strength for overall economic growth.”
The Institute for Supply Management, the publisher of Inside Supply Management magazine, produces monthly Reports on Business for the manufacturing and non-manufacturing sectors. Additional information is available at www.ism.ws.
