US June manufacturing data posts better-than-expected results
02 Jul 2011
US manufacturing grew at a strong pace in June, indicating a revival in the global economy, especially after a sharp slowdown in May.
The Institute for Supply Management (ISM), purchasing managers index for the manufacturing sector for June rose 1.8 per cent to 55.3 from 53.5 in May. A level above 50 indicates expansion.
The rise in the index has come after a sharp 7-per cent drop in May from April and June index is still far below the above 60 plus level recorded in the first four months of the year.
According to the ISM survey, a pronounced build-up in factory inventories drove a rebound in the month.
Also, the ISM's new orders index rose only marginally 0.6 per cent to 51.6 from 51.0 in June, suggesting a continuing fragility in the sector.
"New orders and production were both modestly up from last month," ISM said, adding that manufacturers were also adding jobs at a steady pace.
