ISM Manufacturing Index Improves in June

Manufacturing levels in the U.S. improved last month but still showed overall contraction, the Institute for Supply Management said Wednesday.

ISM’s monthly factory services index for June rose to a reading of 44.8, from 42.8 in May, ISM said in its monthly report.

Figures of more than 50 indicate expansion, while below that shows contraction.

“Manufacturing continues to contract at a slower rate, but the trends in the indexes are encouraging as seven of 18 industries reported growth in June,” said Norbert Ore, chair of ISM’s business survey committee.

“Most encouraging is the gain in the production index, which is up 12.1 points in the last two months to a 52.5” reading, he said in a statement.

The production index rose 6.5 points in June, while employment gained 6.4 to a 40.7 reading.

The prices increased 6.5 to 50, while supplier deliveries notched up 0.8 to a 50.6 reading.

ISM’s factory index measures manufacturing components of the economy.