Manufacturing sector grows for 23rd straight month

By Vicki Needham – 07/01/11 10:35 AM ET

Manufacturing activity picked up pace in June after falling off sharply in May amid high energy prices.

Axel Laser Manufacturing sector grows for 23rd straight month

The manufacturing index rose to 55.3 percent in June from 53.5 percent in May, the 23rd straight month of expansion as the sector drives the sluggish economic recovery, the Institute for Supply Management, a trade group of purchasing executives, reported on Friday.

A reading above 50 indicates that the manufacturing sector is expanding.   press brake Manufacturing sector grows for 23rd straight month

In June, new orders for goods and employment increased modestly, with employment showing continued strength with an increase of 1.7 percentage points to 59.9 percent, the ISM report showed.

wet type Manufacturing sector grows for 23rd straight month

The rate of increase in prices slowed for the second consecutive month, dropping 8.5 percentage points in June to 68 percent after a 9 percentage point drop in May the lowest figure since August 2010 when the index registered 61.5 percent.

“While the rate of price increases has slowed and the list of commodities up in price has shortened, commodity and input prices continue to be a concern across several industries,” the report said.

Of the 18 manufacturing industries, 12 reported growth in June, led by miscellaneous manufacturing, printing, computer and electronic products as well as paper products and textile mills.

Heading into the Independence Day weekend, the markets got a boost from the manufacturing data, which exceeded economists’ estimates.

 

 

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