A newly released report from the Institute for Supply Management shows manufacturing in the U.S. expanded in June. The PMI Index — a bellwether for purchasing confidence among inventory executives — registered 50.9 percent,1 an increase of 1.9 percentage points when compared to May's reading of 49 percent.
Of the 18 manufacturing industries surveyed, 12 reported growth in June in the following order: Furniture & Related Products; Apparel, Leather & Allied Products; Paper Products; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Wood Products; Food, Beverage & Tobacco Products; Primary Metals; Fabricated Metal Products; Plastics & Rubber Products; Machinery; and Nonmetallic Mineral Products. The four industries reporting contraction in June are: Textile Mills; Transportation Equipment; Chemical Products; and Computer & Electronic Products.
The complete June PMI Index report, which includes data on new orders, production, and employment, is available online.
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- A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. A PMI™ in excess of 42.2 percent, over a period of time, generally indicates an expansion of the overall economy.