The manufacturing sector expanded in June following four months of contraction, according to the latest Manufacturing ISM Report On Business.
The manufacturing sector showed a slight improvement in June as the PMI registered above 50% after four months of decline. According to ISM, manufacturers are experiencing higher prices for their inputs while demand for their products is slowing.
A survey respondent in the chemical products sector said that the shock waves from high crude prices continue to put pressure on derivative pricing." Someone in the machinery sector says they are "seeing renewed interest in outstanding quotes."
In the fabricated metal products sector, "volume is normal, and we are able to recover some of the raw material (steel cost) increases." However, in the food, beverage and tobacco products sector, a respondent says the "commodity bubble is killing profitability."