The manufacturing sector of the U.S. economy grew in June for the fourth time in as many months.
According to the Institute for Supply Management, the Purchasing Manager's Index was up 1.9% from the May reading to 53.2%. A reading above 50% indicates the manufacturing economy is generally expanding; below 50% suggests contraction.
At the same time, the overall economy grew for the 85th consecutive month
The nuts and bolts
The New Orders Index came in at 57%, up 1.3% from May; the Production Index grew by 2.1% to 54.7%; and the Employment Index went from 49.2% in May to 50.4%.
The Prices Index, on the other hand, fell 3% to 60.5%, indicating higher raw materials prices for the fourth consecutive month.
Of the 18 manufacturing industries, 13 reported growth 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.
Three industries reported contraction in June:
- Electrical Equipment, Appliances & Components;
- Transportation Equipment; and
- Plastics & Rubber Products.