United States: Manufacturing PMI rebounds in June
July 1, 2011
Manufacturing PMI unexpectedly recovered from May's drop, raising hopes that the growth in the manufacturing sector will continue powering the economic recovery. In June, the ISM manufacturing index (PMI) increased to 55.3%, from 53.5% in May which contrasted market expectations that had the index falling to 52.0%. In addition, the reading remained above the 50 point threshold, indicating that the manufacturing sector has been expanding uninterruptedly since August 2009. The rise over May was broad-based, with most sub-categories increasing over the previous month. That said, the improvement was particularly significant in the respondents' own inventories and in customers' inventories, which rose by 5.4 points and 7.5 points respectively. In contrast, the prices category dropped 8.5 points to 68.0%, as a higher number of respondents reported paying the same prices as in the month before.