After hitting its lowest level in four years in May, the manufacturing industry bounced back in June, surpassing analysts’ forecasts.
The PMI registered 50.9% in June following May’s reading of 49%, according to the Manufacturing ISM Report on Business. The latest report was released July 1 and surveys the nation’s top supply executives. Readings below 50 indicate contraction, while those above 50 indicate expansion.
The PMI reading had been causing some concern as the level of growth had been slowing down in recent months. After stronger readings of 53.1% in January and 54.2% in February, the PMI slowed to 51.3% in March and 50.7% in April before hitting the low in May.
Despite the bounce in manufacturing, the gauge of employment fell to 48.7%, the lowest level since September 2009, from 50.1% in May.
Throughout it all, however, the overall economy continued expanding. In June, the economy grew for the 49th consecutive month, according to the Manufacturing ISM Report on Business.
"Despite lingering concerns about the economy and uncertainty over a variety of government policies and struggling worldwide markets, mid-sized industrial firms appear poised to make the investments they need to make in order to grow," Steve Menaker, Assurance Partner, McGladrey LLP wrote in a recent Viewpoints column on www.MfgEngMedia.com.
This month, his firm released the results of its annual Manufacturing & Distribution Monitor, which takes an in-depth look at middle market companies in the industrial sector through the eyes of their executives.
"As the industrial sector looks to the future with optimism about revenue and income growth, technology is proving to be a high priority for companies as they begin to increase investment in key areas. When asked about their investment priorities for the next 12 months, 79% of respondents said they planned to increase spending on information technology (IT) – more than any other category of investment."
For more, visit http://tinyurl.com/June2013ISMReport.