The Institute for Supply Management’s PMI Index reached 55.3 in June—up from 53.5% in May, according to the group’s June Report on Business. The latest survey results signal the continued expansion of the manufacturing economy in the U.S. and reflects 25 consecutive months in which the overall economy grew.
“New orders and production were both modestly up from last month, and employment showed continued strength with an increase of 1.7 percentage points to 59.9 percent,” said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee.
Twelve out of 18 manufacturing industries reported growth in June: Miscellaneous Manufacturing; Printing & Related Support Activities; Computer & Electronic Products; Paper Products; Textile Mills; Petroleum & Coal Products; Nonmetallic Mineral Products; Transportation Equipment; Chemical Products; Fabricated Metal Products; Machinery; and Electrical Equipment, Appliances & Components.
At the same time, survey respondents confirmed that supplier deliveries are slowing. Among some of their general comments:
- "We continue to see inflation, though at a reduced rate [compared] to earlier months." (Chemical Products)
- "Slight slowdown in overall business in both domestic and international markets, although still above 2010 at the same time." (Electrical Equipment, Appliances & Components)
- "The earthquake and related issues in Japan have caused shortages of some automotive equipment, negatively impacting global automotive production." (Fabricated Metal Products)
- "Business is still up and down, with no real upside potential for us until the housing market rebounds." (Furniture & Related Products)
- "Customers are still being cautious with their buying. Certain plastics and metal prices continue to rise." (Machinery)
The Institute for Supply Management’s June Report on Business is available in its entirely online.