From the Institute for Supply Management: June 2015 Manufacturing ISM® Report On Business®
The ISM manufacturing index suggested expansion in June.
The PMI was at 53.5 per cent in June, up from 52.8 per cent in May.
The employment index was at 55.5 per cent, up from 51.7 per cent in May, and the new orders index was at 56 per cent, up from 55.8 per cent.
Manufacturing, US
US manufacturers ended the second quarter on stable footing, reporting a strong flow of orders that could help support the overall economy in coming months.
Manufacturing growth has accelerated for the past two months, evidence that U.S. factories are beginning to adapt and overcome the drags caused by a rise in the dollar’s value and cheaper oil prices, two trends that date back to last fall.
The index’s measure of production fell, but it remained above 50. The gauge of new orders rose slightly to 56 from 55.8. But manufacturers are responding to the increased demand by hiring more workers, as the employment measure increased to 55.5 from 51.7, a sign that many companies expect additional orders in the coming months and are hiring in advance.
The ISM report showed factory orders and employment in June stood at their highest readings since December 2014. The June production index held close to its solid May level. The export index showed a small contraction in June, but foreign demand picked up slightly for the second quarter as a whole after contracting in the winter. A gain in the ISM employment index suggests employers were hiring last month “in anticipation for future production, now that order books are filling up,” said Bradley Holcomb, who oversees the ISM Survey.
The dollar, too, has steadied in recent months. While U.S. currency will continue to be a drag on exports, manufacturers say they can at least adjust production schedules to account for it.
This leaves manufacturers dependent on greater demand domestically from consumers.