The US ISM manufacturing index, released Monday by the Institute for Supply Management: June 2018 Manufacturing ISM® Report On Business®, indicated expansion in June. The PMI was at 60.2% in June, up from 58.7% in May. The employment index was at 56.0%, down from 56.3% last month, and the new orders index was at 63.5%, down from 63.7%.
The Prices Index registered 76.8% in June, a 2.7 percentage point decrease from the May reading of 79.5%, indicating higher raw materials prices for the 28th consecutive month.
SPECIAL MENTION WAS MADE OF THESE EVER-INCREASING TARIFFS:
“Respondents are overwhelmingly concerned about how tariff related activity is and will continue to affect their business.”
US Manufacturing Indices: June 2018
This was above expectations of 58.3%, and suggests manufacturing expanded at a faster pace in June than in May
Elsewhere, the US ISM Non-Manufacturing Index released Thursday last week was at 59.1%, up from 58.6% in May. The employment index decreased in June to 53.6%, from 54.1%. Note: Above 50 indicates expansion, below 50 contraction.
Economic activity in the non-manufacturing sector grew in June for the 101st consecutive month, say the nation’s purchasing and supply executives
The NMI® registered 59.1%, which is 0.5 percentage point higher than the May reading of 58.6 percent. This represents continued growth in the non-manufacturing sector at a slightly faster rate. The Non-Manufacturing Business Activity Index increased to 63.9%, 2.6 percentage points higher than the May reading of 61.3%, reflecting growth for the 107th consecutive month, at a faster rate in June. The New Orders Index registered 63.2%, 2.7 percentage points higher than the reading of 60.5 percent in May. The Employment Index decreased 0.5 percentage point in June to 53.6% from the May reading of 54.1%.
The Prices Index decreased by 3.6 percentage points from the May reading of 64.3% to 60.7%, indicating that prices increased in June for the 28th consecutive month. According to the NMI®, 17 non-manufacturing industries reported growth. Respondents continue to be optimistic about business conditions and the overall economy. There is a continuing concern relating to tariffs, capacity constraints and delivery.
This suggests faster expansion in June than in May.