June was a good month for the manufacturing sector of the economy.
The Institute for Supply Management reports its Purchasing Managers Index jumped 2.9% last month for a reading of 57.8%, marking the tenth straight month of expansion.
A reading above 50 indicates growth while anything below that suggests contraction.
At the same time, the overall economy grew for the 97th consecutive month.
A closer look at the report shows the New Orders was up 4% to 63.5%, while the Production Index came in at 62.4%, an advance of 5.3% from May.
The Employment Index was up 3.7% to 57.2% and the Supplier Deliveries index added 3.9% for a reading of 57%.
Declines were found in the Inventories Index, which fell 2.5% to 49%, and the Prices Index, which registered 55% -- down 5.5%, indicating higher raw materials’ prices for the 16th consecutive month, but at a slower rate of increase in June compared with May.
The overall picture generally reflects expanding business conditions; with new orders, production, employment, backlog and exports all growing in June compared with May, with supplier deliveries and inventories struggling to keep up with the production pace.
The following 15 of 18 manufacturing industries reported growth in June:
- Furniture & Related Products;
- Nonmetallic Mineral Products;
- Paper Products;
- Electrical Equipment, Appliances & Components;
- Chemical Products;
- Transportation Equipment;
- Computer & Electronic Products;
- Food, Beverage & Tobacco Products;
- Plastics & Rubber Products;
- Printing & Related Support Activities;
- Fabricated Metal Products;
- Wood Products;
- Miscellaneous Manufacturing; and
- Petroleum & Coal Products.
The three industries reporting contraction last month were:
- Apparel, Leather & Allied Products;
- Textile Mills; and
- Primary Metals.