ISM manufacturing index at a five-month high

Manufacturing News, Source : TheManufacturer.com
Published : 02 Jul 2002 20:56

The Institute for Supply Management (ISM)’s latest report stated that its manufacturing index continued the five-month climb in June to 56.2, up from 55.7 in May, its highest level since February 2000. The ISM production index, which measures current output of the nation’s manufacturers, rose to 61.4 in June, its highest level in three years

The strength in manufacturing might offset some of the weaker components of the economy, like commercial construction and the possibility that the consumer sector might soften, said Richard Yamarone, an Argus Research economist.

In a separate study, the Commerce Department reported that May’s construction spending was lower than expected. With an overall value drop of 0.7% for projects, or an annually adjusted figure of $852 billion, spending is at its lowest level since December.

Construction spending on residential projects remains steady, but economists feel that construction spending on commercial projects will not rise until the economic recovery is more certain.

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