ISM Manufacturing Index Rises to 53.5 in June

U.S. manufacturers revved up their expansion a bit in June, according to a survey released Wednesday by the Institute for Supply Management. Employment increased last month, a positive sign for Thursday's payrolls report.

The ISM's manufacturing purchasing managers index rose to 53.5 in June from 52.8 in May. Economists surveyed by The Wall Street Journal had expected the June PMI to increase to 53.2.

Earlier Wednesday, data provider Markit said its own final U.S. PMI came in at 53.6 in June from 54.0 in May. Markit said it was the lowest reading since October 2013, although hiring remained strong. As with the ISM, a Markit reading over 50 indicates expansion.

Of the 18 industries in the ISM survey, 11 reported growth in May, and the ISM subindexes generally improved in June.

The ISM new orders index advanced to 56.0 last month from 55.8 in May. The exports index was little changed at 49.5 from 50.0.

The ISM production index also was little changed at 54.0 from 54.5.

The employment index increased to 55.5 in June from 51.7 in May. Earlier Wednesday, payroll processor ADP said it estimated factory payrolls increased by 7,000 jobs in June. The Labor Department will release the June employment report on Thursday. Economists surveyed by The Wall Street Journal think the U.S. economy added about 233,000 new jobs last month.

Manufacturers report little price pressures for inputs in June. The ISM's prices paid index held at 49.5 in May.

U.S. manufacturers added further to inventories last month. The ISM inventory index rose to 53.0 from 51.5.

Write to Kathleen Madigan at [e-mail]

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