The Institute for Supply Management's (ISM) factory index of manufacturing activity, the PMI, rose to 55.3 in June after falling 6.9 percent to 53.5 in May (any figure above 50 indicates general expansion of the manufacturing industry). Additionally, a PMI in excess of 42.5 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the 25th consecutive month in the overall economy, as well as expansion in the manufacturing sector for the 23rd consecutive month.
While both imports and exports fell, dropping 1.5 and 3.5 percent, respectively, both new orders and production showed moderate growth in June. The employment index jumped 1.7 percent to 59.9, and inventories rose as well, up 5.4 percent to 54.1 in June.
After months of growth, however, primary metals and fabricated metal products were the only two--out of 18 manufacturing industries--reporting lower prices in June compared to May.