Friday, July 3rd33.8°C
25936
26015

Survey: US factories expanded in June, but pace slowed from May; production index slips

WASHINGTON - U.S. manufacturing grew in June for the 13th straight month. But the pace of the expansion slowed from May.

The Institute for Supply Management said Tuesday that its manufacturing index dipped to 55.3 in June from 55.4 in May. Any reading higher than 50 signals that manufacturing is growing.

The trade group of purchasing managers said that orders rose at a faster pace last month compared with May. But growth in production and exports slowed. A measure of employment shows that factories added jobs for the 12th straight month; the pace of hiring last month was the same as in May.

Fifteen of 18 manufacturing industries grew in June, led by furniture makers and mineral producers. Textile, chemical, and plastics and rubber manufacturing contracted in June.

Last week, the Commerce Department reported that orders for U.S. durable goods fell 1 per cent in May, dragged down by a drop in demand for military equipment. Excluding defence-related goods, orders rose. And in a good sign for future business investment, orders for core capital goods rose 0.7 per cent.

Increased spending by businesses would give the economy some momentum after it got off to a bad start this year: The U.S. economy shrank at a 2.9 per cent annual rate from January through March. But economists blame the first-quarter drop on an unusually bitter winter and a sharp reduction in businesses' inventories. They expect economic growth to rebound to an annual pace of 3 per cent the second half of 2014.

The job market has been steadily improving. Employers added 200,000 jobs in May for the fourth straight month, longest such stretch since 1999. Factories added 10,000 jobs in May.

In a research note, analysts at Stone McCarthy Research Associates said the ISM survey's employment measure is "consistent with further gains in manufacturing payrolls." They forecast that factories added another 10,000 jobs in June.

The government's employment report for June comes out Thursday.

Economists have been worried about the fallout from slower economic growth in China. But a survey out Tuesday showed that Chinese manufacturing grew in June for the first time in six months, though the expansion was weak. HSBC Corp. said Tuesday its purchasing managers index for China rose to 50.7 from May's 49.4 on a 100-point scale. Numbers above 50 signal growth.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14682.39+44.40
S&P CDNX670.58-1.00
DJIA17730.11-27.80
Nasdaq5009.21-3.91
S&P 5002076.78-0.64
CDN Dollar0.7955-0.0018
Gold1167.10+4.10
Oil56.20-1.41
Lumber288.50+0.40
Natural Gas2.77-0.05

 
Okanagan Companies
Pacific Safety0.17+0.00
Knighthawk0.010.00
QHR Technologies Inc1.52-0.03
Cantex0.035-0.015
Anavex Life Sciences0.455+0.004
Metalex Ventures0.075+0.010
Russel Metals22.78-0.09
Copper Mountain Mining1.17+0.03
Colorado Resources0.09+0.03
ReliaBrand Inc0.006+0.000
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.165+0.005
Decisive Dividend Corporation3.00+0.50

 



26908

FEATURED Property
2344340705 Hazell Road
3 bedrooms 3 baths
$498,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Active listening

Has this ever happened to you? You had an initial meeting with a prospect. You asked that prospect what seemed to be all the right questions. You had what felt to you like a good conversation, and bas...


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...


TFSA strategies

Photo: Thinkstock.comThe federal government has increased the annual contribution limit of Tax-Free Savings Accounts (TFSA) to $10,000. Going forward, the annual limit will no longer be indexed to inf...

_



26370




Member of BC Press Council


26680