Posted July 1, 2021

Manufacturing sector shows moderate growth

Economic activity in the manufacturing sector grew in June for the 13th consecutive month, but at a pace slightly lower than May.

The Institute for Supply Management (ISM) said its index of national factory activity slipped to 60.6 last month, the lowest reading since January, from 61.2 in May.

“Business Survey Committee panelists reported that their companies and suppliers continue to struggle to meet increasing levels of demand. Record-long raw-material lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy," said Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee.

The New Orders Index registered 66 percent, decreasing 1 percentage point from the May reading of 67 percent. The Production Index registered 60.8 percent, an increase of 2.3 percentage points compared to the May reading of 58.5 percent.