In June, manufacturing expanded at its fastest pace since April 2006 when the PMI Index registered 56.9. This performance appears sustainable in the third quarter due to the current strength in New Orders and Production."
WHAT RESPONDENTS ARE SAYING ...
* "Business remains brisk with isolated areas of softness." (Nonmetallic Mineral Products)
* "Things are picking up." (Primary Metals)
* "Busy now but still down approximately 13 percent from this time last year." (Fabricated Metal Products)
* "Exchange rate and some raw material increases have had a negative impact on our purchased components." (Transportation Equipment)
* "Petroleum-based material prices have begun to escalate at a faster pace." (Paper Products)
A few notes.
1.) This is a good report. There are a group of economists currently arguing that business spending and growth will keep the economy from falling into a recession. This helps to bolster that argument.
2.) "Busy now but still down approximately 13 percent from this time last year." This comment jibes with the following information from Barron's pulse of the economy section. This indicates things are improving, but are still in general below year ago levels.
3.) Commodities and Industrials have been strong performers for the last half year. Some of these industries have sold off over the recent pullback. However, this news might make those areas more attractive again.