July 10, 2013
Economic Activity Rebounds After Month of Contraction
Economic activity in the manufacturing sector bounced back in June after a month of contraction, according to the latest ISM Report on Business from the Institute for Supply Management in Tempe, Ariz. ISM’s June PMI registered 50.9 percent, up 1.9 percentage points from its May figure. A reading above 50 indicates growth.
Of the 18 manufacturing industries surveyed, 12 reported growth in June, including primary metals, fabricated metal products and machinery. The average PMI for January through June of 51.5 percent corresponds to a 2.9 percent annual increase in GDP, ISM claims.
The trend was not as positive for hiring, however. ISM's June Employment Index registered 48.7 percent, a decrease of 1.4 percentage points. Manufacturing employment contracted for the first time since September 2009, when the index registered 47.8 percent.
ISM's New Orders Index increased in June by 3.1 percentage points to 51.9 percent, while its Production Index increased by 4.8 percentage points to 53.4 percent.