{"id":17549,"date":"2020-07-08T16:00:07","date_gmt":"2020-07-08T21:00:07","guid":{"rendered":"https:\/\/www.miq.com\/?p=16448"},"modified":"2020-07-08T16:00:07","modified_gmt":"2020-07-08T21:00:07","slug":"june-2020-manufacturing-ism-report-on-business","status":"publish","type":"post","link":"https:\/\/www.noatumlogistics.com\/us\/june-2020-manufacturing-ism-report-on-business\/","title":{"rendered":"JUNE 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae"},"content":{"rendered":"<p><strong>Source:\u00a0 <\/strong><strong><a href=\"https:\/\/www.instituteforsupplymanagement.org\/about\/MediaRoom\/newsreleasedetail.cfm?ItemNumber=31189&amp;SSO=1\">Institute for Supply Management \u2013 July 1, 2020<\/a><\/strong><\/p>\n<p>Economic activity in the\u00a0manufacturing sector grew in June, with the\u00a0overall economy notching a second month of growth after one month of contraction,\u00a0say the nation\u2019s supply executives in the latest\u00a0Manufacturing ISM<sup>\u00ae<\/sup><strong>\u00a0<\/strong><em>Report On Business<\/em><em><sup>\u00ae<\/sup><\/em>.<!--more--><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16449 size-full\" src=\"https:\/\/www.miq.com\/wp-content\/uploads\/2020\/07\/ISM-June-2020-posted-7.7.20.png\" alt=\"\" width=\"997\" height=\"695\" \/><\/p>\n<p>The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management<sup>\u00ae<\/sup>\u00a0(ISM<sup>\u00ae<\/sup>) Manufacturing Business Survey Committee: \u201cThe June PMI<sup>\u00ae<\/sup>\u00a0registered 52.6 percent, up 9.5 percentage points from the May reading of 43.1 percent. This figure indicates expansion in the\u00a0overall economy\u00a0for the second straight month after April\u2019s contraction, which ended a period of 131 consecutive months of growth. The New Orders Index registered 56.4 percent, an increase of 24.6 percentage points from the May reading of 31.8 percent. The Production Index registered 57.3 percent, up 24.1 percentage points compared to the May reading of 33.2 percent. The Backlog of Orders Index registered 45.3 percent, an increase of 7.1 percentage points compared to the May reading of 38.2 percent. The Employment Index registered 42.1 percent, an increase of 10 percentage points from the May reading of 32.1 percent. The Supplier Deliveries Index registered 56.9 percent, down 11.1 percentage points from the May figure of 68 percent.<\/p>\n<p>\u201cThe Inventories Index registered 50.5 percent, 0.1 percentage point higher than the May reading of 50.4 percent. The Prices Index registered 51.3 percent, up 10.5 percentage points compared to the May reading of 40.8 percent. The New Export Orders Index registered 47.6 percent, an increase of 8.1 percentage points compared to the May reading of 39.5 percent. The Imports Index registered 48.8 percent, a 7.5-percentage point increase from the May reading of 41.3 percent.<\/p>\n<p>\u201cJune signifies manufacturing entering an expected expansion cycle after the disruption caused by the coronavirus (COVID-19) pandemic. Comments from the panel were positive (1.3 positive comments for every one cautious comment), reversing the cautious trend which began in March. The manufacturing sector is reversing the heavy contraction of April, with the PMI<sup>\u00ae<\/sup>\u00a0increasing month-over-month at a rate not seen since August 1980, with several other indexes also posting gains not seen in modern times.\u00a0Demand\u00a0expanded, with the (1) New Orders Index growing at a respectable level, supported by New Export Orders Index contraction softening; (2) Customers\u2019 Inventories Index returning to a level considered a positive for future production, and (3) Backlog of Orders Index softening, although still contracting.Consumption\u00a0(measured by the Production and Employment indexes) contributed positively (a combined 34.1-percentage point increase) to the PMI<sup>\u00ae<\/sup>\u00a0calculation, with most companies\u2019 employees returning to work in June.\u00a0Inputs<strong>\u00a0<\/strong>\u2013 expressed as supplier deliveries, inventories and imports \u2013 weakened, due to supplier delivery issues abating and import levels improving. Inventory levels reached parity with supply and demand. Inputs contributed negatively (a combined 11-percentage point decrease) to the PMI<sup>\u00ae<\/sup>\u00a0calculation but were more than offset by the demand and consumption improvement. (The Supplier Deliveries and Inventories indexes directly factor into the PMI<sup>\u00ae<\/sup>; the Imports Index does not.) Prices entered expansion again, but at marginal levels, supporting a positive outlook.<\/p>\n<p>\u201cAs predicted, the growth cycle has returned after three straight months of COVID-19 disruptions. Demand, consumption and inputs are reaching parity and are positioned for a demand-driven expansion cycle as we enter the second half of the year. Among the six biggest industry sectors, Food, Beverage &amp; Tobacco Products remains the best performing industry sector, and Computer &amp; Electronic Products, and Chemical Products returned to respectable growth. Transportation Equipment and Fabricated Metal Products continue to contract, but at much softer levels,\u201d says Fiore.<\/p>\n<p>Of the 18 manufacturing industries, the 13 that reported growth in June \u2013 in the following order \u2013 are: Textile Mills; Wood Products; Furniture &amp; Related Products; Printing &amp; Related Support Activities; Apparel, Leather &amp; Allied Products; Food, Beverage &amp; Tobacco Products; Computer &amp; Electronic Products; Plastics &amp; Rubber Products; Chemical Products; Miscellaneous Manufacturing; Nonmetallic Mineral Products; Paper Products; and Electrical Equipment, Appliances &amp; Components. The four industries reporting contraction in June are: Transportation Equipment; Primary Metals; Fabricated Metal Products; and Machinery.<\/p>\n<p>Click <a href=\"https:\/\/www.instituteforsupplymanagement.org\/about\/MediaRoom\/newsreleasedetail.cfm?ItemNumber=31189&amp;SSO=1\">here<\/a> to access the entire release from the Institute for Supply Management website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source:\u00a0 Institute for Supply Management \u2013 July 1, 2020 Economic activity in the\u00a0manufacturing sector grew in June, with the\u00a0overall economy notching a second month of growth after one month of&#8230;<\/p>\n","protected":false},"author":9,"featured_media":16449,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[359],"tags":[],"class_list":["post-17549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>JUNE 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae - USA<\/title>\n<meta name=\"description\" content=\"Source:\u00a0 Institute for Supply Management \u2013 July 1, 2020 Economic activity in the\u00a0manufacturing sector grew in June, with the\u00a0overall economy notching a Institute for Supply Management, ISM, Economic activity, Timothy R. Fiore, CPSM, CPM, PMI, New Orders Index, Porduction Index, Backlog of Orders index, Employment index, Supplier Deliveries Index, Inventories Index, Prices Index, New Export Orders Index, Imports Index, coronavirus, COVID-19, pandemic, demand, consumption, industry sectors, food, beverage, tobacco, computer and electronic products, chemical products, transportation equipment and fabricated metal products, textile mills, wood products, furniture and related products, printing and related support activities, apparel, leather and allied products, plastics and rubber products, chemical, nonmetallic mineral, paper products, electrical equipment, appliance and components,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.noatumlogistics.com\/us\/june-2020-manufacturing-ism-report-on-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"JUNE 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae - USA\" \/>\n<meta property=\"og:description\" content=\"Source:\u00a0 Institute for Supply Management \u2013 July 1, 2020 Economic activity in the\u00a0manufacturing sector grew in June, with the\u00a0overall economy notching a Institute for Supply Management, ISM, Economic activity, Timothy R. 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