ISM Manufacturing Index Preview

The Institute for Supply Management (ISM) Manufacturing Index for June is set to be released at 10 EST today. Expectations are for a reading of 53.2 with a consensus range from 52.8 to 54 according to Bloomberg. This is slightly greater than last month's reading of 52.8. The ISM manufacturing index is constructed so that any level at 50 or above signifies growth in the manufacturing sector. The expected 53.2 number is still above the neutral mark of 50, with the current outlook still calling for moderate growth The ISM manufacturing composite index is a diffusion index calculated from a monthly survey of purchasing managers at roughly 300 manufacturing firms nationwide. The Index has been soft this year, pulled down by weakness in export orders. After reaching a high last October, the ISM Index had fallen for six straight months until showing a slight gain in May. Economic activity in the manufacturing sector continues to expand, with the reading of 52.8 in May marking the the 29th consecutive month above the 50 level. Last month's report showed continuing concerns, however,over the price of the US dollar and challenges affecting markets related to oil and gas industries.