Purchasing Managers’ Index - June 2015
PMI fell to 52.8 in June – production slowing
- The PMI decreased by 2 points in June to 52.8 from 54.8 in May. This is the lowest reading since November of last year, when it registered 52.7. This should be seen, however, in light of the fact that the Purchasing Managers’ Index has been in the growth zone for just over two years and that the short-term trend remains stable. In June, four of five sub-indices registered above the 50 mark.
- The sub-index for new orders fell to 52.5 in June from 55.9 in May, contributing -1.0 point to the main index. Export orders, with an index reading of 51.7, continued to rise during the month, though at a slower pace, while domestic orders fell. The last time that domestic orders dropped was in September of last year, but it was as far back as April 2013 that the index was lower than this month’s 46.9.
- The production sub-index declined from 58.8 to 54.6 in June. With a negative contribution of 1.1 points, it was the main driver behind the monthly decline in the PMI. The weaker production rate, combined with slower growth in new orders, may have impacted planned production, where the index fell from 65.0 to 61.7 in June. The sub-index for employment rose marginally in June to 52.1.
- Prices of suppliers’ commodity and intermediate goods rose by 2.3 points to 55.7 in June, the highest reading since June 2011, when the index registered 60.5. Of note during the month were higher prices of ethylene and plastic resin, while the price of aluminum fell.
PMI - June 2015