US Factory Activity Growth At Near 3-Year High: ISM

The Institute for Supply Management’s Manufacturing PMI in the US rose to 57.8 in June 2017 from 54.9 in May and way above market expectations of 55.2. The reading pointed to the strongest rate of expansion since August 2014, as output, new orders and employment grew at faster pace.

Growth picked up in: New orders (63.5 from 59.5 in May); production (62.4 from 57.1); employment (57.2 from 53.5); and supplier deliveries (57 from 53.1).

Meanwhile, the inventories index fell to 49 from 51.5 in May; and the prices index declined to 55 from 60.5 in the previous month, indicating that raw materials’ prices went up for the 16th consecutive month, but at a slower rate when compared with May. 

Comments from the panel generally reflect expanding business conditions; with new orders, production, employment, backlog and exports all growing in June compared to May and with supplier deliveries and inventories struggling to keep up with the production pace.

Of the 18 manufacturing industries, 15 reported growth in June in the following order: Furniture & Related Products; Nonmetallic Mineral Products; Paper Products; Machinery; 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. Three industries reported contraction in June compared to May: Apparel, Leather & Allied Products; Textile Mills; and Primary Metals.

US Factory Activity Growth At Near 3-Year High: ISM

ISM | Joana Ferreira |
7/3/2017 2:13:50 PM