US manufacturing resumes growth in June - ISM

01 July 2008 16:00  [Source: ICIS news]

WASHINGTON (ICIS news)--US manufacturing resumed growth in June after four months of contraction, the Institute for Supply Management (ISM) said on Tuesday, while cautioning that chemical and other producers remain pressed by high raw material costs.

 

The institute said that its closely watched purchasing managers index (PMI) rose to 50.2% for June from the 49.6% reading reported for May.

 

An index reading above 50% indicates that manufacturing industries - a key downstream consuming sector for chemical manufacturers - are experiencing production growth.  A reading below 50% means that manufacturing is in contraction.

 

The PMI readings for February, March and April had held at around 48.5, a worrying indication that the manufacturing sector was in a modest but steady decline.

 

The improvement in June is slight, with the institute cautioning that not too much should be read into the first positive growth indicator in four months.

 

“When viewed from the manufacturer’s perspective, they are experiencing higher prices for their inputs while demand for their products is slowing,” said Norbert Ore, chairman of the institute’s survey committee.

 

The institute surveys top executives of 19 key industries on 10 business performance measures to produce the PMI.

 

Ore said that the chemicals sector was among nine manufacturing industries reporting growth in June, along with paper products, computers, petroleum, food and beverage, among others.

 

On the downside, plastics and rubber products were among 10 sectors reporting contraction during the month, joined by wood products, electrical equipment, transportation equipment and apparel, among others.

 

However, both chemicals and plastics were among 10 industries reporting growth in new export orders in June, the institute said, with eight other manufacturing sectors showing steady export performance.

 

($1 = €0.63)

 

To discuss issues facing the chemical industry go to ICIS connect

By: Joe Kamalick
+1 713 525 2653

< previous article(ICIS Podcast: Chemical News Central 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly