US manufacturing survey shows second straight month of growth

01 August 2013 16:42  [Source: ICIS news]

HOUSTON (ICIS)--Growth in the overall US manufacturing sector continued in July for a second straight month, with chemicals production increasing after a contraction the month before, a key survey said on Thursday.

In its monthly purchasing managers index (PMI), the Institute for Supply Management (ISM) said that the index gained 4.5 percentage points in July, raising the reading to 55.4% from June’s measure of 50.9%.

The PMI is a composite of supplier responses to the ISM’s monthly survey of 10 different business performance measures in 18 major manufacturing sectors.

A PMI reading above 50% indicates the US manufacturing sector is expanding, while an index measure below 50% means production is contracting.

July’s jump was driven by substantial growth in key subsidiary indexes, including an increase of 11.6 percentage points in production to 65.0%, 6.4 points in new orders to 58.3% and 5.7 points in employment to 54.4%.

Of the 18 manufacturing sectors surveyed by the ISM, 13 reported growth, including chemicals production. Plastics and rubber production was one of the five that reported contraction.

An unidentified chemicals industry executive responded to the survey request for comment by saying: “Business remains flat. Looking for some seasonal bump as we come to the beginning of our ‘busy’ time.”

By: Jeremy Pafford
+1 713 525 2653

AddThis Social Bookmark Button

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

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index