US June manufacturing index in negative territory
02 Jul 2009
Manufacturing in the US continues to shrink for the 17th consecutive month, though at the slowest pace since August 2008, shows the monthly report by the Institute for Supply Management (ISM) published yesterday.
According to the "Manufacturing ISM Report on Business," the June Purchasing Managers Index (PMI), on which the report is based, rose to 44.8 per cent, form 42.8 per cent in the previous month.
A reading above 50 per cent indicates that the manufacturing sector is growing, while a reading below 50 per cent indicates that it is generally contracting. Readings below 41 are associated with a recession in the broader economy.
The index hit a 28-year low of 32.9 in December 3008, capping 11 consecutive months of decline.
The reading narrowly beat estimates from economists, who expected a jump to 44.6, according to a Briefing.com consensus survey.
The data track new orders, production, employment, supplier deliveries, inventories, customers' inventories, backlog of orders, prices, new export orders, imports and buying policy.