Manufacturing Sector Rebounds in June

The ISM Manufacturing Index registered 52.6 points in June, an increase of 9.5 percentage points from the May reading of 43.1 points, according to the Institute for Supply Management.  Comments from respondents were positive regarding the near-term outlook, with sentiments optimistic about recovery from the coronavirus (COVID-19) pandemic.

Of the 18 manufacturing industries, Textile Mills; Wood Products; Furniture & Related Products; Printing & Related Support Activities; Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Plastics & Rubber Products; Chemical Products; Miscellaneous Manufacturing; Nonmetallic Mineral Products; Paper Products; and Electrical Equipment, Appliances & Components reported growth in June.

The four industries reporting contraction in June, in order, were: Transportation Equipment; Primary Metals; Fabricated Metal Products; and Machinery.

The Employment Index registered 42.1%, an increase of 10 percentage points from the May reading of 32.1%. This is the index’s largest month-over-month increase since April 1961.

The New Orders Index registered 56.4% in June, an increase of 24.6 percentage points from May’s reading of 31.8%. This is the first month of growth after four consecutive months of contraction.

The New Export Orders Index registered 47.6%, up 8.1 percentage points from May.

The Inventories Index registered 50.5% in June, an increase of 0.1 percentage points from the May reading of 50.4%. Inventories expanded for the second month after eleven consecutive months of contraction. “The index grew again, but at a marginal level. Inventories appear to have reached an equilibrium with consumption and inputs” said Timothy R. Fiore, CPSM, C.P.M., Chair of the ISM Manufacturing Business Survey Committee.

Read the ISM release.