Manufacturing Sector Expanded In June For 30th Straight Month, Arkansas Sees Uptick

by Wesley Brown ([email protected]) 137 views 

Economic activity in the manufacturing sector expanded in June for the 30th consecutive month, and the overall economy grew for the 73rd consecutive month, according to a monthly survey of the nation’s supply executives.

The report, issued Wednesday by the Institute for Supply Management Manufacturing Business Survey Committee, shows that the June purchasing managers index, or PMI, registered 53.5%, an increase of 0.7 percentage point over the May reading of 52.8%.

The New Orders Index registered 56%, an increase of 0.2 points from the reading of 55.8% in May. The Production Index registered 54%, 0.5 percentage points below the May reading of 54.5%.

The Employment Index registered 55.5%, 3.8 points ahead of the May reading of 51.7%, reflecting growing employment levels from May at a faster rate. Inventories of raw materials registered 53%, an increase of 1.5 percentage points from the May reading of 51.5%. The Prices Index registered 49.5%, the same reading as in May, indicating lower raw materials prices for the eighth consecutive month.

Comments from the panel indicate mostly stable to improving business conditions, with the notable exception relating to the oil and gas markets. Of the 18 manufacturing industries, 11 are reporting growth in June in the following order: Furniture & Related Products; Wood Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Fabricated Metal Products; Chemical Products; Paper Products; and Computer & Electronic Products.

The four industries reporting contraction in June are: Petroleum & Coal Products; Primary Metals; Plastics & Rubber Products; and Machinery. To see the full ISM report, click here.

Meanwhile, the Creighton University Mid-America Business Conditions Index for May, a leading economic indicator for a nine-state region stretching from North Dakota to Arkansas, climbed for June.

Indices over the past several months have pointed to positive, but slow economic growth over the next three to six months for the region.

The Business Conditions Index, which ranges between 0 and 100, rose to 53.0 from 50.4 in May. The regional index, mu