Courtesy of Mish.
US Manufacturing as measured by the June 2013 Manufacturing ISM Report On Business® rose for the 12th month.
ISM vs. Consensus
Bloomberg reports …
Highlights
Growth rates, in contrast to Markit's report released earlier this morning, slowed in ISM's manufacturing sample, to a composite 53.2 vs April's 54.9. Employment growth slowed noticeably, to 51.9 from April's 54.7. Growth in new orders also slowed noticeably, to 53.3 from 55.1, as did growth in backlog orders, to 52.5 vs 55.5.
Supplier deliveries improved which is another sign of deceleration in activity. Production also slowed, but only slightly to 55.2. Inventory readings on net look a little heavy compared to April. Prices paid, in contrast to other signs of slowing, show a little pressure, at 60.0 vs 56.5.
Today's results from the manufacturing sector are mixed, with Markit showing definite acceleration and ISM showing definite deceleration. Together they probably point to little change for the manufacturing sector relative to April. The Dow is moving to opening lows in immediate reaction to the ISM report.
Market Consensus Before Announcement
The composite index from the ISM manufacturing survey for April rose 1.2 points to a better-than-expected level of 54.9. Employment, which has been very soft in this report, bounced 3.6 points higher to a respectable 54.7. New orders were at a solid 55.1, unchanged from March, with new export orders up 1.5 points to a very strong 57.0. Backlog orders were solid at 55.5. Production was little changed from March at 55.7-a still notably positive reading.
This was lukewarm report suggesting that the weather related bounce is over, and manufacturing plods along with slow growth.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
