6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Managementﾙ Manufacturing Business Survey Committee and group director, strategic sourcing and procurement, Georgia-Pacific Corporation. "The manufacturing sector grew at a slightly slower, but still aggressive, rate in June. The rate of growth in New Orders and Production remained encouraging as we head into the third quarter. Additionally, the Inventories Index rose above 50 percent, a somewhat rare occurrence, but not unexpected at this stage of a recovery."
ISM's Customer Inventories Index indicates that customer inventories are low, while the ISM Prices Index indicates that manufacturers once again experienced higher prices in their purchases. The Backlog of Orders Index indicates that order backlogs increased in June. The New Export Orders and Import Indexes continued to grow in June.
Comments from respondents continue to indicate demand is still strong in most industries, but concerns about the cost of energy are repeated numerous times. There are mentions of lengthening leadtimes, but it appears that members are able to work through these issues at this time.
ISM's PMI registered 61.1 percent in June, a decrease of 1.7 percentage points when compared to 62.8 percent in May. ISM's New Orders Index declined 2.8 percentage points from 62.8 percent in May to 60 percent in June. ISM's Production Index decreased 1.6 percentage points from 64.8 percent in May to 63.2 percent in June.
The ISM Employment Index is at 59.7 percent for June, a decrease of 2.2 percentage points when compared to the 61.9 percent reported in May.
"June represents a strong finish to the first half of the year, and the current picture is very encouraging for the third quarter as New Orders and Production are still growing significantly," said Ore.