Friday, July 01, 2011
The U.S. manufacturing sector expanded in June, according to the Institute for Supply Management. This figure exceeded the expectations of economists who expected the June PMI to slip to 51.8. On Thursday, the Chicago PMI also exceeded expectations by rising to 61.1.
"The PMI registered 55.3 percent, an increase of 1.8 percentage points from May, indicating expansion in the manufacturing sector for the 23rd consecutive month, said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "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 percent."
The rate of increase in prices slowed for the second consecutive month, dropping 8.5 percentage points in June to 68 percent. 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 percent. 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.
ISM's New Orders Index registered 51.6 percent in June, which is an increase of 0.6 percentage point when compared to the 51 percent reported in May. This is the 24th consecutive month of growth in the New Orders Index.
The 10 industries reporting growth in new orders in June — listed in order — are: Textile Mills; Petroleum & Coal Products; Paper Products; Miscellaneous Manufacturing; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Transportation Equipment; Fabricated Metal Products; Chemical Products; and Computer & Electronic Products. The seven industries reporting decreases in new orders in June — listed in order — are: Plastics & Rubber Products; Apparel, Leather & Allied Products; Wood Products; Primary Metals; Food, Beverage & Tobacco Products; Machinery; and Nonmetallic Mineral Products.
ISM's Production Index registered 54.5 percent in June, which is an increase of 0.5 percentage point when compared to the May reading of 54 percent.
The 10 industries reporting growth in production during the month of June — listed in order — are: Paper Products; Printing & Related Support Activities; Miscellaneous Manufacturing; Fabricated Metal Products; Nonmetallic Mineral Products; Machinery; Electrical Equipment, Appliances & Components; Chemical Products; Computer & Electronic Products; and Transportation Equipment. The three industries reporting a decrease in production in June are: Plastics & Rubber Products; Apparel, Leather & Allied Products; and Food, Beverage & Tobacco Products. Five industries reported no change in production in June compared to May.
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