July 5, 2017
PMI Hits 57.8 Percent in June
Economic activity in the manufacturing sector expanded in June, reports the Tempe, Ariz.—based Institute for Supply Management in its latest Manufacturing Report on Business. The PMI for June was 57.8 percent, an increase of 2.9 percentage points from May. A PMI above 50 percent represents growth in the manufacturing sector.
Of the 18 manufacturing industries, 15 reported growth in June, including, fabricated metal products, machinery, appliances and components and miscellaneous manufacturing. Primary metals was one of three industries reporting contraction in June.
Among other indices, the New Orders Index climbed 4 percentage points to 63.5 percent, the Production Index increased 5.3 percentage points to 62.4 percent, and the Employment Index of 57.2 percent was up 3.7 percentage points.
If annualized, the June PMI would correspond to a 4.6 percent increase in real GDP annually. The year-to-date average of 56.4 percent corresponds to a 4.1 percent increase in real GDP, reports Timothy Fiore, chairman of the ISM’s Manufacturing Business Survey Committee.