The Institute for Supply Management (ISM) said its closely-watched manufacturing index (PMI) came in at 57.9 in June, beating the 55.1 consensus forecast. The reading is the strongest gain since August 2014.
“Comments from the panel generally reflect expanding business conditions,” Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee said, adding that “new orders, production, employment, backlog and exports all growing in June compared to May and with supplier deliveries and inventories struggling to keep up with the production pace.”
New orders came in at a very strong 63.5, while production was also very strong at 62.4. Export orders, at 59.5, are showing strength and import orders rose to a solid 54.0. Inventories, at 49.0, showed little change.
Employment and supplier deliveries showed the most significant change and improvement. Employment, at 57.2%, gained 3.7% from the 53.5% in May. The Supplier Deliveries index came in at 57%, a 3.9% gain from the 53.1% in May.