ISM: U.S. Economy Continues Growth in June, but at Slower Rate

Researched by Industrial Info Resources (Sugar Land, Texas)--Economic activity in the U.S. manufacturing sector continued to expand in June, but demand showed no growth, according to the Institute for Supply Management's (ISM) (Tempe, Arizona) latest Report on Business. The survey report, released on Monday, said the ISM's June Purchasing Manager's Index (PMI), which indicates the prevailing direction of economic trends in the manufacturing and service sectors, registered 51.7%, a decrease of 0.4 percentage points from the May reading of 52.1%, and was the lowest reading since October 2016.

June was the third straight month with slowing PMI expansion, ISM said, adding that its New Orders Index recording zero expansion. Customer demand did not expand for the first time since December 2015, said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, in a press release. Of the 18 industries covered in the report, 10 reported growth in new orders in June, and six reported a decline.

On the other hand, ISM's Production Index registered 54.1% in June, an increase of 2.8 percentage points over May, indicating growth in production for the 34th consecutive month. ISM's Employment Index for June indicated employment growth for the 33rd consecutive month.

Industrial Info is tracking more than 3,000 U.S. projects worth $386 billion among 12 industries that are in the construction phases. This includes more than $134 billion in Manufacturing Industry projects.



"Comments from the panel reflect continued expanding business strength, but at soft levels," ISM said. Also, survey respondents "expressed concern about U.S.-China trade turbulence, potential Mexico trade actions and the global economy. Overall, sentiment this month is evenly mixed," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, in a press release. New export orders remained weak, but overall consumption continued to expand.

About $10.9 billion of the U.S. Manufacturing Industry projects under construction being tracked by Industrial Info involve the semiconductors and computers sector. In December last year, Micron Technology Incorporated (NASDAQ:MU) (Boise, Idaho) kicked off a $3 billion expansion of its semiconductor manufacturing plant in Manassas, Virginia. The project includes a 178,000-square-foot clean room building, with completion planned for first-quarter 2020. Hoffman Construction Company is performing the construction chores. For more information, see Industrial Info's project report.

Industrial Info also is tracking about $13.8 billion in automotive sector projects that are in the construction stages. This includes SK Holdings' (Seoul, South Korea) $1.67 billion lithium battery manufacturing plant in Commerce, Georgia. Construction on the first phase of the two-phase project began in the first quarter this year. A 1.2 million-square-foot building will be constructed, with the ultimate capacity to manufacture enough batteries to power 250,000 vehicles. Completion is planned for second-quarter 2020. For more information, see Industrial Info's project report.

Construction also is underway on a $1.6 billion Toyota-Mazda vehicle assembly plant in Huntsville, Alabama. Following its planned completion in first-quarter 2021, the 3.3 million-square-foot plant will be able to assemble 300,000 vehicles per year. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.