ISM manufacturing index for June 2020
- Prior month 43.1
- ISM manufacturing index 52.6 vs. 49.8 estimate. Highest since April 2019
- employment index 42.1 vs. 32.1 last month
- new orders index 56.4 vs. 51.9 estimate and 31.8 last month. The rise in orders is the largest since 1948. The new orders index was the highest since January 2019
- price is paid 51.3 vs. 44.6 estimate and 40.8 last month
- production rose to 57.3. That was the strongest reading since November 2018
- the index 2 months ago was at a 11 year low
A good reading but with employment tomorrow and with the jobs index is still below the 50 level, it is a bit of a disappointment from that perspective. Nevertheless new orders in production are showing good expansionary strength off of the low levels. Recall however that the index measures the difference from the prior month. Those levels were much lower for new orders in particular at 31.8 last month. As a result, on a reopening, you would expect a rebound in measures like new orders and production.
