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Purchasing Managers Index: Difference between revisions
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==== Manufacturing ==== | ==== Manufacturing ==== | ||
The June Manufacturing PMIregistered 46 percent, 0.9 percentage point lower than the 46.9 percent recorded in May. Regarding the overall economy, this figure indicates a seventh month of contraction after a 30-month period of expansion. Seventy-one percent of manufacturing gross domestic product (GDP) contracted in June, down from 76 percent in May. More industries contracted strongly, however, as the share of manufacturing GDP registering a composite PMI calculation at or below 45 percent — a good barometer of overall manufacturing weakness — was 44 percent in June, compared to 31 percent in May. <ref>https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/june/</ref> | The June Manufacturing PMIregistered 46 percent, 0.9 percentage point lower than the 46.9 percent recorded in May. Regarding the overall economy, this figure indicates a seventh month of contraction after a 30-month period of expansion. '''Seventy-one percent of manufacturing gross domestic product (GDP) contracted in June, down from 76 percent in May.''' More industries contracted strongly, however, as the '''share of manufacturing GDP registering a composite PMI calculation at or below 45 percent — a good barometer of overall manufacturing weakness — was 44 percent in June, compared to 31 percent in May'''. <ref>https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/june/</ref> | ||
"The U.S. manufacturing sector shrank again, with the Manufacturing PMI losing ground compared to the previous month, indicating a faster rate of contraction. The June composite index reading reflects companies continuing to manage outputs down as softness continues and optimism about the second half of 2023 weakens. Demand eased again, with the (1) New Orders Index contracting but at a slower rate, (2) New Export Orders Index moving into contraction and (3) Backlog of Orders Index remaining at a level not seen since early in the coronavirus pandemic (May 2020). A potential bright spot: The Customers’ Inventories Index dropped into ‘too low’ territory, a positive for future production." | "The U.S. manufacturing sector shrank again, with the Manufacturing PMI losing ground compared to the previous month, indicating a faster rate of contraction. The June composite index reading reflects companies continuing to manage outputs down as softness continues and optimism about the second half of 2023 weakens. Demand eased again, with the (1) New Orders Index contracting but at a slower rate, (2) New Export Orders Index moving into contraction and (3) Backlog of Orders Index remaining at a level not seen since early in the coronavirus pandemic (May 2020). A potential bright spot: The Customers’ Inventories Index dropped into ‘too low’ territory, a positive for future production." | ||
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==== Services ==== | ==== Services ==== | ||
In June, the Services PMI registered 53.9 percent, 3.6 percentage points higher than May’s reading of 50.3 percent. '''The composite index indicated growth in June for the sixth consecutive month''' after a reading of 49.2 percent in December. Fifteen industries reported growth in June. The Services PMI by being above 50 percent for the sixth month after a single month of contraction and a prior 30-month period of expansion, continues to indicate sustained growth for the sector.<ref>https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/services/june/</ref> | |||
“There has been an '''uptick in the rate of growth for the services sector. This is due mostly to the increase in business activity, new orders and employment.''' Increased capacity, backlog reduction and continued improvements in logistics have impacted delivery times (resulting in a decrease in the Supplier Deliveries Index). The majority of respondents indicate that '''business conditions remain stable'''; however, they are cautious relative to inflation and the future economic outlook.” | |||
* The New Orders Index expanded in June for the sixth consecutive month, the figure of 55.5 percent is 2.6 percentage points higher than the May reading of 52.9 percent. | |||
* The Prices Index was down 2.1 percentage points in June, to 54.1 percent. | |||
* The Backlog of Orders Index registered 43.9 percent, a 3-percentage point increase compared to the May figure of 40.9 percent, which was the index’s lowest reading since May 2009 (40 percent). | |||
=== May 2023 === | === May 2023 === | ||