Manufacturing is the strongest it has been in 14 months, bouncing back stronger than expected in the month of June.
The Institute for Supply Management (ISM) reported a 52.6 reading for its manufacturing index in June, an improvement over the 49.5 many economists had predicted. It's the strongest number since April of 2019 and after three straight months of contraction.
Any reading above 50 indiciates growth says ISM. Big gains were recorded in employment (from 32.1 to 42.1), production (from 24.1 to 57.3), and new orders (from 24.6 to 56.4).
“As predicted, the growth cycle has returned after three straight months of COVID-19 disruptions,” said Timothy R. Fiore, ISM chair. “Demand, consumption and inputs are reaching parity and are positioned for a demand-driven expansion cycle as we enter the second half of the year.”
Of 18 industries surveyed, only five showed reductions. ISM said the industries seeing the biggest growth were wood products, furniture and related products, and textile mills.
Companies from all 50 states were surveyed.
Recent job gains also smashed expectations - with 4.8 million added in June. Unemployment fell to 11.1 percent from an expected 12.4 percent.
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