News Column

Manufacturing Activity up, Jobs Down in June

July 1, 2013

Staff Reports --

Airplane factory (file photo)

Manufacturing activity was up significantly in June but manufacturing jobs took a sharp hit, according to the Institute of Supply Management index report released on Monday.

After a quarter of losses, the ISM index greeted the second half of the year by rising to 50.9 percent from 49 percent, indicating expansion in the sector. The ISM survey is based on responses from sector executives in charge of ordering raw materials for their companies.

Economists had predicted the rise would be 50.6 percent, according to MarketWatch.

Manufacturing had shown a strong first quarter but was down in the second. Experts blamed the ailing global economy for the drop, MarketWatch reported, and said they expected an inventory correction among wholesale durable goods manufacturers.

The ISM reports findings weren't clear cut. The gauge of new orders was up 51.9 percent from 48.8 percent in May, and production rose to 53.4 percent from 48.6 percent, but employment hit its lowest point since September 2009.

The ISM employment index sank to 48.7 in June from 50.1 in May.

Meanwhile, revised estimates from the Bureau of Economic Analysis last week showed that the real GDP grew at just 1.8 percent in the first quarter of 2013 rather than the expected 2.4 percent.


Check out the The Billion Dollar Club -- the HispanicBusiness 500 now lists five billion-dollar-plus companies on its index of the top-earning U.S. Hispanic enterprises.

For more stories covering business, please see HispanicBusiness' Business Channel

Source: (c) 2013. All rights reserved.

Story Tools