June 2021 Manufacturing ISM Report On Business Reports New Orders & Production Growing while Employment Contracts

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 grew in June, with the overall economy notching a 13th consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

Manufacturing grew in June, as the Manufacturing PMI registered 60.6 percent, 0.6 percentage point lower than the May reading of 61.2 percent, thus  continuing to indicate strong sector expansion

ISM’s New Orders Index registered 66 percent in June, down 1 percentage point compared to the 67 percent reported in May. This indicates that new orders grew for the 13th consecutive month.

The Production Index registered 60.8 percent in June, 2.3 percentage points higher than the May reading of 58.5 percent, indicating growth for the 13th consecutive month.

ISM’s Employment Index registered 49.9 percent in June, 1 percentage point lower than the May reading of 50.9 percent. The Employment Index dipped into contraction territory after expanding for six straight months.

The delivery performance of suppliers to manufacturing organizations was slower in June, as the Supplier Deliveries Index registered 75.1 percent, 3.7 percentage points lower than the 78.8 percent reported in May.

The Inventories Index registered 51.1 percent in June, 0.3 percentage point higher than the 50.8 percent reported for May, indicating growth for a second straight month.

ISM’s Backlog of Orders Index registered 64.5 percent in June, a 6.1-percentage point decrease compared to the 70.6 percent reported in May, indicating order backlogs expanded for the 12th straight month.

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