US manufacturing slows in June, with PMI at 60.6: ISM

The manufacturing sector in the United States slowed in June, according to the PMI from the Institute of Supply Management (ISM).

Indeed, the June manufacturing PMI registered 60.6 percent, a decrease of 0.6 percentage points from the May reading of 61.2 percent.

Economic activity in the manufacturing sector grew in June, and the overall economy posted a thirteenth consecutive month of growth.

A reading above 50% indicates that the manufacturing economy is expanding overall; below 50% indicates that, in general, it is contracting.

In turn, the new orders index registered 66%, a decrease of 1 percentage point from the May reading of 67 percent.

On the other, the Production Index was located at 60.8%, an increase of 2.3 percentage points compared to the May reading of 58.5 percent.

Meanwhile, the Price Index climbed to 92.1%, an increase of 4.1 percentage points compared to May’s figure of 88% and the highest reading of the index since July 1979 (93.1 percent).

The order book index registered 64.5%, 6.1 percentage points less than the May reading of 70.6 percent.

For its part, the employment index was placed at 49.9 percent; 1 percentage point lower compared to May’s reading of 50.9 percent.

Manufacturing

The supplier delivery index registered 75.1%, 3.7 percentage points less than the May figure of 78.8 percent.

At the same time, the inventory index was 51.1%, 0.3 percentage points higher than May’s reading of 50.8 percent.

The New Export Orders Index registered 56.2%, an increase of 0.8 percentage points compared to the May reading of 55.4 percent.

Finally, the Import Index registered 61%, an increase of 7 percentage points from the May reading of 54 percent.

US fiscal stimulus has helped increase US purchases, especially of durable goods.