Connect With PPD
Sections: Economy

ISM Manufacturing Index (PMI) Beats Forecast in June, Returns to Expansion

U.S. Manufacturing Sector Enters Expansion Cycle Earlier than Economists Expected Post-Coronavirus

Tempe, Arizona (PPD) — The Institute for Supply Management (ISM) Manufacturing Index (PMI) came in stronger than expected at 52.6% in June, up from 43.1% in May. This reading indicates the overall economy in expansion for the second straight month after one month of contraction that ended 131 consecutive months of growth.

Forecasts for the PMI ranged from a low of 46.0 to a high of 51.5, and the consensus forecast was 49.0.

The reading also indicates the U.S. manufacturing sector entered an expansion cycle earlier than expected after the contraction caused by the efforts to mitigate the spread of coronavirus (COVID-19). The rate of increase for the PMI is a level not seen since August 1980.

Comments from the panel were positive (1.3 positive comments for every one cautious comment), reversing the cautious trend which began in March. The manufacturing sector is reversing the heavy contraction of April, with the PMI® increasing month-over-month at a rate not seen since August 1980, with several other indexes also posting gains not seen in modern times.

IndexSeries Index JunSeries Index MayPercentage Point ChangeDirectionRate of ChangeTrend* (Months)
PMI®52.643.1+9.5GrowingFrom Contracting1
New Orders56.431.8+24.6GrowingFrom Contracting1
Production57.333.2+24.1GrowingFrom Contracting1
Employment42.132.1+10.0ContractingSlower11
Supplier Deliveries56.968.0-11.1SlowingSlower8
Inventories50.550.4+0.1GrowingFaster2
Customers’ Inventories44.646.2-1.6Too LowFaster45
Prices51.340.8+10.5IncreasingFrom Decreasing1
Backlog of Orders45.338.2+7.1ContractingSlower4
New Export Orders47.639.5+8.1ContractingSlower4
Imports48.841.3+7.5ContractingSlower5
OVERALL ECONOMYGrowingFaster2
Manufacturing SectorGrowingFrom Contracting1
Manufacturing ISM Report On Business data is seasonally adjusted for the New Orders, Production, Employment and Inventories indexes.
*Number of months moving in current direction.

READ FULL STORY

SubscribeSign In
PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Share
Published by
PPD Business Staff

Recent Posts

Jobless Claims Fell Sharply for Week Ending August 1, Beating Forecast

Initial jobless claims fell significantly to 1,186,000 for the week ending August 1, a decrease…

2 hours ago

ISM Non-Manufacturing Index (NMI) Ticks Higher to 58.1 in July, Beating Forecast

Tempe, Ariz. — The Institute for Supply Management (ISM) Non-Manufacturing Index (NMI) for the service…

1 day ago

Inside The Numbers: Media Push Biden to Duck Debates, Never-Ending Election Night

On Inside The Numbers, we discuss the media push for Joe Biden to duck debates…

2 days ago

Inside The Numbers: Manufacturing Reboots, Biden at Peak and Preview for Week

On Inside The Numbers, we discuss the reboot in manufacturing, Joe Biden's potential peak and…

2 days ago

Factory Orders Gain 6.2% in June, Growth Beats Forecast for Second Month

Factory orders, or new orders for manufactured goods, rose for the second straight month in…

2 days ago

U.S. Light Vehicle Sales Rise Again in July, Gain 10.2%

The Autodata Corporation reported U.S. light vehicle sales rose 10.2% in July to 14.53 million…

2 days ago

This website uses cookies.