Economic activity in the manufacturing sector expanded in June for the 30th consecutive month, and the overall economy grew for the 73rd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

“The Institute for Supply Management (ISM) index, a short-term leading indicator of U.S. manufacturing growth, increased by 0.7 percentage points from May to a level of 53.5 percent in June,” noted Cliff Waldman, director of economic studies for the MAPI Foundation, the research affiliate of the Manufacturers Alliance for Productivity and Innovation. “Generally speaking, such a reading is indicative of continued manufacturing output gains at a slightly accelerated pace.”

Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee states, “The past relationship between the PMI and the overall economy indicates that the average PMI for January through June (52.6 percent) corresponds to a 3 percent increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI for June (53.5 percent) is annualized, it corresponds to a 3.3 percent increase in real GDP annually.”

A PMI in excess of 43.1 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the June PMI indicates growth for the 73rd consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the 30th consecutive month.

By: DocMemory
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