Leading manufacturing indicator rises
The ISM manufacturing index rose to 56% in June, from 55% in May.
The increase in the Institute for Supply Management’s manufacturing index brought the indicator to its highest level in a year.
The ISM manufacturing index rose to 56% in June, from 55% in May.
Readings above 50 indicate economic expansion, while readings below 50 indicate a contraction.
“Following a weak first quarter, the manufacturing sector rebounded in a strong fashion during the second quarter,” said Norbert J. Ore, of the Institute in a statement. “This performance appears sustainable in the third quarter due to the current strength in new orders and production.”
Specifically, the Institute reported that new orders increased to 60.3% in June from 59.6% in May, production increased to 62.9% from 58.3%, employment fell slightly to 51.1% from 51.9%, and inventories fell to 45.3% from 46.1%.
The price index fell to 68% from a May reading of 71%.
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