ISM Reports US Manufacturing Has Risen To Five-Month High

The Institute of Supply Management sheds some light on the current state of manufacturing in the United States.

The Manufacturing ISM Report On Business is based on data compiled from purchasing and supply executives nationwide

In general respondents were upbeat about the economy. Some of the key insights from its June report include:

• “Avian flu is having a huge effect on egg pricing and items manufactured with eggs.” (Food, Beverage & Tobacco Products)
• “Automotive industry remains strong and is expected to stay that way through 2015.” (Fabricated Metal Products)
• “Business continues to hold in the U.S., [but is] soft in Europe and in decline in Asia.” (Transportation Equipment)
• “Manufacturing business has improved slightly.” (Chemical Products)
• “Slight improvement in defense spending on future business.” (Computer & Electronic Products)
• “Most prices are stable and business is stable.” (Nonmetallic Mineral Products)
• “Downturn in oil and gas markets impacting demand.” (Miscellaneous Manufacturing)
• “Stable. Extra capacity available if more orders come in.” (Textile Mills)
• “A bit slow. Sales down from last year.” (Machinery)
• “Business continues to be strong, with housing starts being up in our markets driving cabinet sales.” (Furniture and Related Products)

Barclays economists distributed the following note to clients following the release: “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.”