June 2018 Manufacturing ISM Report On Business Indicates Strong Growth In Manufacturing for the 22nd Consecutive Month

Author photo: Steve Clouther
BySteve Clouther
Category:
Industry Trends

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected.  Economic activity in the manufacturing sector expanded in June, and the overall economy grew for the 110th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

Manufacturing expanded in June as the PMI registered 60.2 percent, an increase of 1.5 percentage points from the May reading of 58.7 percent, which indicates strong growth in manufacturing for the 22nd consecutive month, led by continued expansion in new orders, production and employment.

ISM’s New Orders Index registered 63.5 percent in June, which is a decrease of 0.2 percentage point when compared to the 63.7 percent reported for May, indicating growth in new orders for the 30th consecutive month.

ISM’s Production Index registered 62.3 percent in June, which is an increase of 0.8 percentage point when compared to the 61.5 percent reported for May, indicating growth in production for the 22nd consecutive month.

ISM’s Employment Index registered 56 percent in June, a decrease of 0.3 percentage point when compared to the May reading of 56.3 percent.  This indicates growth in employment in June for the 21st consecutive month.

The delivery performance of suppliers to manufacturing organizations was markedly slower in June, as the Supplier Deliveries Index registered 68.2 percent.  This is 6.2 percentage points higher than the 62 percent reported for May.  This is the 21st straight month of slowing supplier deliveries that continue to constrain production growth and inventory expansion.

The Inventories Index registered 50.8 percent in June, which is an increase of 0.6 percentage point when compared to the 50.2 percent reported for May, indicating raw materials inventories grew in June.

ISM’s Backlog of Orders Index registered 60.1 percent in June, which is 3.4 percentage points lower than the 63.5 percent reported in May, indicating growth in order backlogs for the 17th consecutive month.

Of the 18 manufacturing industries, 17 reported growth in June, in the following order: Textile Mills; Wood Products; Nonmetallic Mineral Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; Transportation Equipment; Furniture & Related Products; Machinery; Primary Metals; Miscellaneous Manufacturing; Chemical Products; Petroleum & Coal Products; and Plastics & Rubber Products. No industry reported a decrease in June compared to May.

 

 

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