June 2013 ISM Reports

Click image for larger version

The most-closely followed nationwide manufacturing diffusion index expanded in June. The Institute for Supply Management’s (ISM) PMI registered 50.9 percent, an increase of 1.9 percentage points from May's reading of 49 percent (50 percent is the breakpoint between contraction and expansion). “Comments from the [respondent] panel generally indicate slow growth and improving business conditions,” said Bradley Holcomb, chair ISM’s Manufacturing Business Survey Committee.

Click image for larger version

Not all industries saw better conditions, however. "Indications are that customers have acceptable inventory levels, and as a result, are backing down on new orders and reassessing market conditions," wrote one Wood Products respondent. A Paper Products respondent was more upbeat, observing that "June sales appear to have rebounded from what was a lackluster May."

The pace of growth in the service sector backed off slightly in June. The non-manufacturing index (now known simply as the “NMI”) registered 52.2 percent, 1.5 percentage points lower than May’s 53.7 percent. The non-manufacturing report contained no comments from industries we track.

Click image for larger version

Relevant commodities up in price included caustic soda, plywood, lumber, and corrugated boxes and packaging. Commodities down in price included lumber (pine, spruce & treated) and natural gas. Diesel and gasoline were variously reported as both up and down in price. No relevant commodities were in short supply.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.