Manufacturing & The Economy
Manufacturing expanded in June as the PMI registered 55.3%, a slight decrease of 0.1% when compared to May's reading of 55.4%. The June PMI indicates growth for the 61st consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the 13th consecutive month.
"The past relationship between the PMI and the overall economy indicates that the average PMI® for January through June (54%) corresponds to a 3.6% increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI for June (55.3%) is annualized, it corresponds to a 4% increase in real GDP annually," says Bradley J. Holcomb, chair of the Institute for Supply Management manufacturing business survey committee.