United States: Manufacturing returns to expansion territory in June
July 1, 2013
In June, the ISM manufacturing index increased to 50.9% from 49.0% in May, which was slightly above market expectations that had the index rising to 50.5%. As a result, the index now sits just above the 50 percentage-point threshold that indicates an expansion in the manufacturing sector.
Four of the five components of the index increased over the previous month. Most notably, the production index rose 4.8 percentage points to 53.4%, while the employment index was the only one to record a drop, falling by 1.4 percentage points to 48.7%. As a result, all categories except the employment index now sit at or above the 50% threshold indicating an expansion in those sectors.
FocusEconomics Consensus Forecast panellists project industrial output to rise 2.8%, which is up 0.2 percentage points from last month's forecast. For 2014, panellists see industrial production accelerating to a 4.5% expansion.