June 9, 2014
PMI Stays Above 55 Percent in June
Economic activity in the manufacturing sector expanded in June for the 13th consecutive month as the PMI registered 55.3 percent, reports the Institute for Supply Management, Tempe, Ariz. The PMI was down 0.1 percentage points from May’s reading.
Of the 18 manufacturing industries surveyed, 15 reported growth in June, including fabricated metal products, transportation equipment, miscellaneous manufacturing and primary metals.
The average PMI of 54.0 percent for the first six months of the year corresponds to a 3.6 percent increase in gross domestic product on an annualized basis. If the PMI for June is annualized, it corresponds to a 4.0 percent increase in GDP, reports Bradley Holcomb, chairman of ISM's Manufacturing Business Survey Committee.
ISM's New Orders Index registered 58.9 percent, an increase of 2 percentage points from May, indicating growth in new orders for the 13th consecutive month. The Production Index registered 60 percent, 1 percentage point below the May reading. Employment grew for the 12th consecutive month, registering 52.8 percent, the same as in May. Any reading above 50 indicates growth.