Posted July 5, 2017

Manufacturing activity increased in June

Economic activity in the manufacturing sector expanded in June, reaching its highest level in three years.

The Institute for Supply Management's index registered 57.8 percent, an increase of 2.9 percentage points from the May reading of 54.9 percent and its highest level since August 2014, when it registered 57.9 percent.

The New Orders Index registered 63.5 percent, an increase of 4 percentage points from the May reading of 59.5 percent. The Production Index registered 62.4 percent, a 5.3 percentage point increase compared to the May reading of 57.1 percent.

"Comments from the panel generally reflect expanding business conditions; with new orders, production, employment, backlog and exports all growing in June compared to May and with supplier deliveries and inventories struggling to keep up with the production pace," said Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee.