ISM: Manufacturing Growth Steady for June

Manufacturing growth remained steady in June, according to an Institute for Supply Management report released Tuesday. 

After May's index reading clocked in at 55.4%, June's index came in just a bit lower, at 55.3%. Based on surveys of purchasing managers, a reading above 50% indicates that the manufacturing economy is generally expanding, while below 50% indicates that it is generally contracting.

Market analysts weren't elated by the overall index number, having expected a slightly higher 55.6%. 

ISM Purchasing Managers Index Chart

However, digging into the report, there are some important signs of growth ahead. On a component-by-component basis, the all-important new orders came in two points higher to reach a solid 58.9%. Employment remained in steady growth territory at 52.8%, while production dropped 1 percentage point to notch a respectable 60%. While new orders is a bright spot on June's report, order backlogs headed back into the red, dropping from 52.5% in May to 48% for June. 

Fifteen of the 18 industries surveyed reported growth for June, with furniture taking the cake for the biggest improvement. On the other end of the spectrum, textile mills, chemical products, and plastics & rubber products all reported contraction in June.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3014853, ~/Articles/ArticleHandler.aspx, 10/23/2014 1:22:11 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASD 4,382.85 -36.63 -0.83%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement