U.S. manufacturing flattens out in June

After three years of expansion, the U.S. manufacturing sector showed signs of slowing in June, according to the Institute for Supply Management.

The Institute for Supply Management (ISM, Tempe, Ariz., USA) reported on July 2 that economic activity in the U.S. manufacturing sector contracted in June for the first time since July 2009; however, the overall economy grew for the 37th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business. A reading of more than 50 percent indicates that the manufacturing economy is generally expanding; less than 50 percent indicates that it is generally contracting.

The report was issued by Bradley J. Holcomb, CPSM, CPSD, chair of the ISM Manufacturing Business Survey Committee. “The PMI registered 49.7 percent, a decrease of 3.8 percentage points from May’s reading of 53.5 percent, indicating contraction in the manufacturing sector for the first time since July 2009, when the PMI registered 49.2 percent. The New Orders Index dropped 12.3 percentage points in June, registering 47.8 percent and indicating contraction in new orders for the first time since April 2009, when the New Orders Index registered 46.8 percent. The Production Index registered 51 percent, and the Employment Index registered 56.6 percent. The Prices Index for raw materials decreased significantly for the second consecutive month, registering 37 percent, which is 10.5 percentage points lower than the 47.5 percent reported in May. Comments from the panel range from continued optimism to concern that demand may be softening due to uncertainties in the economies in Europe and China.”  

Last 12 months:

 

  • June 2012: 49.7
  • May 2012: 53.5
  • April 2012: 54.8
  • March 2012: 53.4
  • February 2012: 52.4
  • January 2012: 54.1
  • December 2011: 53.9
  • November 2011: 52.7
  • October 2011: 50.8
  • September 2011: 51.6
  • August 2011: 50.6
  • July 2011: 50.9