Manufacturing Still Chugging Along

The Institute for Supply Management manufacturing report showed an increase in the overall manufacturing activity index, rising from 53.5 in May 2011 to 55.3 in June, the 23rd consecutive month of expansion. This increase bolstered the argument that the spring slowdown had more to do with high commodity prices than low demand. Overall commodity prices have falled over 10% since April, according to the Dow Jones-UBS index. The ISM employment index also rose, from 58.2 in May to 59.9 in June, indicating hiring increased as well. ISM indicies for New Orders, Production, Supplier Deliveries, Inventories, and Customer Inventories also rose, but the ISM indicies Price, Backlog Order, Imports, and Exports fell.