Monday, July 1, 2013

ISM Manufacturing Index Grew in June

The ISM manufacturing index rose to 50.9 in June, following May’s drop to 49.0. The expansionary threshold is 50. Details of the report mostly improved as well.

The indexes for new orders and production rose above the expansionary threshold in June. New orders increased from 48.8 to 51.9, let by export orders, which grew to 54.5. Production also improved 4.8 index points to 53.4.

Not all of the details were positive. Employment dropped below the expansionary threshold to 48.7. It’s the third consecutive month reporting a decline and the first time since 2009 that the index dropped below 50.

Inventories grew in June by 1.5 points to 50.5. The gap between new orders and inventories – a proxy for future production – grew to 1.4 index points, up from a 0.2 decline the previous month.

Read the ISM release.

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