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New ISM Reports Manufacturing Growth in June |
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Written by Vickie Adair
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 The June 2007 Manufacturing ISM Report On Business® marked the fifth consecutive month of growth for the manufacturing sector and indicates growth in future months. The reading was higher than the market expectation of 55.4, coming in at 56 (a reading of 50 or above indicates growth).
The twelve top performing manufacturing industries in the report, generally consistent with an increase in the Census Bureau's series on manufacturing orders, showing growth were Petroleum & Coal Products; Chemical Products; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Computer & Electronic Products; Paper Products; Fabricated Metal Products; Primary Metals; Miscellaneous Manufacturing; Textile Mills; and Machinery.
The growth has been powered by new orders, production and employment. ISM's New Orders Index rose to 60.3 with eleven industries reporting increases during June: Petroleum & Coal Products, Plastics & Rubber Products, Nonmetallic Mineral Products, Chemical Products, Food, Beverage & Tobacco Products, Primary Metals, Fabricated Metal Products, Miscellaneous Manufacturing, Computer & Electronic Products, Paper Products, and Machinery.
ISM's Production Index registered 62.9 percent in June, the fifth consecutive month of production growth for manufacturers. And employment in manufacturing continues to rise. The five industries reporting growth in employment during June are: Petroleum & Coal Products; Chemical Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; and Primary Metals.
Manufacturers are still facing some problems, but those are showing improvement. Prices for nearly all raw materials, including aluminum, chemicals, gasoline and steel, continued climbing; however, the pace was more moderate than the previous month. The delivery performance of suppliers to manufacturing organizations, while still not optimal, was faster in June, ending 47 consecutive months of slower deliveries. The five industries still reporting slower supplier deliveries are: Paper Products; Miscellaneous Manufacturing; Fabricated Metal Products; Chemical Products; and Primary Metals.
The Manufacturing ISM Report On Business® is published monthly by the Institute for Supply Management™. The Institute for Supply Management™, established in 1915, is the largest supply management organization in the world as well as one of the most respected.
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