Posted July 1, 2020

Manufacturing improves for second straight month

Manufacturing expanded during June, as the purchasing manager's index from the Institute for Supply Management registered 52.6 percent, up 9.5 percentage points from May.

“The PMI signaled a rebuilding of economic activity in June after three months below 50 percent. The PMI recorded its largest increase since August 1980, when it increased 10.5 percentage points," said Timothy R. Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Among the big six industries, three of the industry sectors expanded. New Orders and Production returned to expansion, and at respectable levels. Supplier Deliveries reached a normal level of tension between supply and demand. Five of the 10 subindexes registered expansion, a marked improvement from previous periods.”

Fiore added that June signifies manufacturing entering an expected expansion cycle after the disruption caused by the coronavirus (COVID-19) pandemic. "The manufacturing sector is reversing the heavy contraction of April, with the PMI increasing month-over-month at a rate not seen since August 1980, with several other indexes also posting gains not seen in modern times," he said.

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