Manufacturing Business Survey released

Tempe, Arizona) — Economic activity in the manufacturing sector expanded in June for the 11th consecutive month, and the overall economy grew for the 14th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The manufacturing sector continued to grow during June; however, the rate of growth as indicated by the PMI slowed when compared to May. The lower reading for the PMI came from a slowing in the New Orders and Production Indexes. We are now 11 months into the manufacturing recovery, and given the robust nature of recent growth, it is not surprising that we would see a slower rate of growth at this time. The sector appears to be solidly entrenched in the recovery. Comments from the respondents remain generally positive, but expectations have been that the second half of the year will not be as strong in terms of the rate of growth, and June appears to validate that forecast."

PERFORMANCE BY INDUSTRY

Thirteen of the 18 manufacturing industries are reporting growth in June, in the following order: Plastics & Rubber Products; Transportation Equipment; Printing & Related Support Activities; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Paper Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Furniture & Related Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; and Chemical Products. The industries reporting contraction in June are: Apparel, Leather & Allied Products; Wood Products; and Machinery.

WHAT RESPONDENTS ARE SAYING ...

"Component lead times are increasing sharply." (Computer & Electronic Products)
"Market had begun to change, but it is now declining again." (Wood Products)
"BP oil spill will impact business conditions over the next few months." (Fabricated Metal Products)
"The economy continues to be sluggish, with orders 8 percent to 10 percent below last year." (Nonmetallic Mineral Products)
"Retail sales are strong for both the domestic and international markets." (Food, Beverage & Tobacco Products)