Manufacturing bounces back stronger than expected in June, ISM reading shows
More than half of U.S. manufacturers reported better-than-expected expansion in June, the first time that has happened since the coronavirus pandemic locked down the domestic economy.
The Institute for Supply Manufacturing survey showed a reading of 52.6, a percentage count of firms that said their businesses are growing. That’s up from May’s 43.1 and the 41.5 trough in April that came a month after shelter-in-place orders took much of the nation’s productive capacity offline.
Economists surveyed by Dow Jones had been looking for a 49.5 reading.
“As predicted, the growth cycle has returned after three straight months of COVID-19 disruptions,” said Timothy R. Fiore, ISM chair. “Demand, consumption and inputs are reaching parity and are positioned for a demand-driven expansion cycle as we enter the second half of the year.”
Only five of the 18 industries surveyed reported contraction for the month. Expansion was best among textile mills, wood …continued .
[Source: CNBC News]