Fra ISM
PMI® at 53.2%
New Orders, Production and Employment Growing
Inventories Contracting
Supplier Deliveries Slower
(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in June for the fourth consecutive month, while the overall economy grew for the 85th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “The June PMI® registered 53.2 percent, an increase of 1.9 percentage points from the May reading of 51.3 percent. The New Orders Index registered 57 percent, an increase of 1.3 percentage points from the May reading of 55.7 percent. The Production Index registered 54.7 percent, 2.1 percentage points higher than the May reading of 52.6 percent.
The Employment Index registered 50.4 percent, an increase of 1.2 percentage points from the May reading of 49.2 percent. Inventories of raw materials registered 48.5 percent, an increase of 3.5 percentage points from the May reading of 45 percent. The Prices Index registered 60.5 percent, a decrease of 3 percentage points from the May reading of 63.5 percent, indicating higher raw materials prices for the fourth consecutive month.
Manufacturing registered growth in June for the fourth consecutive month, as 12 of our 18 industries reported an increase in new orders in June (down from 14 in May), and 12 of our 18 industries reported an increase in production in June (same as in May).”
Of the 18 manufacturing industries, 13 are reporting 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 are: Electrical Equipment, Appliances & Components; Transportation Equipment; and Plastics & Rubber Products.
WHAT RESPONDENTS ARE SAYING …
- “We are gaining new customers through better sales management.” (Food, Beverage & Tobacco Products)
- “Slower shipments because of weather related flooding.” (Chemical Products)
- “Conditions have remained steady from [the] past month and are in line with our forecast.” (Computer & Electronic Products)
- “Very good start of summer for business levels/orders.” (Fabricated Metal Products)
- “Business is steady with some signs of increase.” (Machinery)
- “Business is still strong, but slowing slightly.” (Transportation Equipment)
- “Business conditions are good, production and demand are stable.” (Miscellaneous Manufacturing)
- “Orders are slowing from China. American customers still steady.” (Primary Metals)
- “Demand continues to be robust.” (Plastics & Rubber Products)
- “Business is still slower than expected.” (Nonmetallic Mineral Products)
| MANUFACTURING AT A GLANCE JUNE 2016 | ||||||
|---|---|---|---|---|---|---|
| Index | Series Index Jun | Series Index May | Percentage Point Change | Direction | Rate of Change | Trend* (Months) |
| PMI® | 53.2 | 51.3 | +1.9 | Growing | Faster | 4 |
| New Orders | 57.0 | 55.7 | +1.3 | Growing | Faster | 6 |
| Production | 54.7 | 52.6 | +2.1 | Growing | Faster | 6 |
| Employment | 50.4 | 49.2 | +1.2 | Growing | From Contracting | 1 |
| Supplier Deliveries | 55.4 | 54.1 | +1.3 | Slowing | Faster | 2 |
| Inventories | 48.5 | 45.0 | +3.5 | Contracting | Slower | 12 |
| Customers’ Inventories | 51.0 | 50.0 | +1.0 | Too High | From Unchanged | 1 |
| Prices | 60.5 | 63.5 | -3.0 | Increasing | Slower | 4 |
| Backlog of Orders | 52.5 | 47.0 | +5.5 | Growing | From Contracting | 1 |
| New Export Orders | 53.5 | 52.5 | +1.0 | Growing | Faster | 4 |
| Imports | 52.0 | 50.0 | +2.0 | Growing | From Unchanged | 1 |
| OVERALL ECONOMY | Growing | Faster | 85 | |||
| Manufacturing Sector | Growing | Faster | 4 | |||
Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.
*Number of months moving in current direction.
