ISM: Manufacturing Sector Down Slightly in June - Modern Distribution Management

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ISM: Manufacturing Sector Down Slightly in June

The June Manufacturing PMI registered 60.6%, which was just below the May reading of 61.2%, according to Manufacturing ISM Report On Business.
Industrial Production Rises October 2021

Economic activity in the manufacturing sector grew in June with the overall economy notching a 13th consecutive month of growth as part of a continued rebound from last year’s pandemic, according to the nation’s supply executives in the latest Manufacturing ISM Report On Business.

“The June Manufacturing PMI registered 60.6%, a decrease of 0.6 percentage point from the May reading of 61.2%,” according to Timothy R. Fiore, CPSM, C.P.M., and the chair of the Institute for Supply Management Manufacturing Business Survey Committee. “This figure indicates expansion in the overall economy for the 13th month in a row after contraction in April 2020.

According to the manufacturing sector report, the New Orders Index registered 66%, which was down 1% from May. The Production Index registered 60.8%, an increase of 2.3 percentage points compared to the May reading of 58.5%. The Prices Index registered 92.1%, up 4.1 percentage points compared to the May figure of 88%,  which was the index’s highest reading since July 1979 (93.1%).

The Supplier Deliveries Index registered 75.1%, down 3.7 percentage points from the May figure of 78.8%. In addition, the Inventories Index registered 51.1%, which was 0.3 higher than May. The New Export Orders Index registered 56.2%, an increase of 0.8 percentage point compared to the May reading of 55.4%. The Imports Index registered 61%, a 7-percentage point increase from the May reading of 54%.

“Business Survey Committee panelists reported that their companies and suppliers continue to struggle to meet increasing levels of demand,” Fiore said. “Record-long raw-material lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy.

“Worker absenteeism, short-term shutdowns due to parts shortages, and difficulties in filling open positions continue to be issues that limit manufacturing-growth potential. Optimistic panel sentiment remained strong, with 16 positive comments for every cautious comment.”

Seventeen of the 18 manufacturing industries reported growth in June, in the following order: Furniture & Related Products; Machinery; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Plastics & Rubber Products; Chemical Products; Fabricated Metal Products; Transportation Equipment; Miscellaneous Manufacturing; Nonmetallic Mineral Products; Textile Mills; Primary Metals; Food, Beverage & Tobacco Products; Paper Products; Printing & Related Support Activities; Wood Products; and Petroleum & Coal Products.

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