ISM manufacturing gauge accelerates in June, ISM says
US manufacturing activity accelerated to its quickest pace this year, according to one of the most widely followed industry surveys.
The Institute for Supply Management´s purchasing managers´ index rose to a reading of 53.5 – the highest since the previous January - after a print of 52.8 in the prior month.
Analysts had been anticipating a reading of 53.2.
June´s reading was consistent with annualised GDP growth in the second quarter of around 2.5%, compared with the contraction seen in the first, Capital Economics pointed out.
The details of the report were also “broadly positive”, the think-tank said.
A gauge of manufacturers´ new orders hit a six-month high of 56, up from May´s reading of 55.8.
In parallel, a sub-index tracking employment in the sector rose to a reading of 55.5 from 51.7.
“At this level, the index is consistent with manufacturing adding around 10,000 jobs to the economy and bodes well for June’s Employment Report.”
"Looking ahead, the recent pickup in the forward-looking survey components suggests a modest improvement in output and employment for domestic manufacturing. We do not expect a robust rebound given the lingering effects of a stronger dollar and lower oil prices; however, we view a modest H2 manufacturing rebound as increasingly likely," commented Barclays analyst Jesse Hurwitz.