PMI Returns to Expansion for Manufacturing
By Metal Center News Staff
on Jul 5, 2020
Economic activity in the manufacturing sector grew in June, according to the nation’s supply executives in the latest Manufacturing ISM Report On Business from the Institute for Supply Management. The PMI was at 52.6 percent in June, up 9.5 percentage points from the May reading.
Other indices also showed dramatic growth in June. The New Orders Index was up 24.6 percentage points to 56.4 percent, the Production Index climbed 24.1 percentage points to 57.3 percent and the Employment Index increased 10 percentage points to 42.1 percent.
“June signifies manufacturing entering an expected expansion cycle after the disruption caused by the coronavirus pandemic. Comments from the panel were positive, reversing the cautious trend which began in March,” said Timothy Fiore, chairman of the ISM’s Manufacturing Business Survey Committee.
Of the 18 manufacturing industries, 13 reported growth in June, though most were not served by the metals industry. Among the four industries reporting contraction in June were fabricated metal products, primary metals, transportation equipment and machinery.