US Manufacturing Rebounded During June (Keynesians Surprised, Again)

The Institute for Supply Management reports its index of national factory activity rose to 55.3 in May from 53.5 the month before.

The reading topped the expectations of most economists who have no theory and simply forecast out the trend of the most recent data. For June most economists actually expected a dip to 51.8, according to a Reuters poll of economists. This means that they have no clue as to the recent uptick in money supply growth, which would have tipped them off that the slowdown was coming to an end.

Of the 18 manufacturing industries, 14 are reported growth in May, in the following order: Nonmetallic Mineral Products; Petroleum & Coal Products; Machinery; Transportation Equipment; Computer & Electronic Products; Textile Mills; Electrical Equipment, Appliances & Components; Primary Metals; Miscellaneous Manufacturing; Paper Products; Chemical Products; Plastics & Rubber Products; Apparel, Leather & Allied Products; and Fabricated Metal Products. The three industries reporting contraction in May are: Printing & Related Support Activities; Furniture & Related Products; and Food, Beverage & Tobacco Products.

Also from the report:



Commodities Up in Price


Adhesives; Aluminum (9); Aluminum Products (5); Brass Products; Butadiene; Caustic Soda (3); Chemicals (3); Cocoa/Cocoa Powder (4); Copper* (10); Copper Based Products (7); Diesel (6); Electric/Electronic Components (3); Foam; Fuel Oils (5); Fuel Surcharges (3); Gasoline; Glycol Ether; High Density Polyethylene (3); Nickel Products; Oils and Lubricants (2); Packaging Materials; Paper; Petroleum Based Products; Plastics (5); Plastic Products (5); Polypropylene (5); Polypropylene Resins; Propylene Glycol; Resins (3); Rubber Products (4); Shrink Wrap Film; Silver (3); Stainless Steel (7); Steel* (9); Steel — Cold Rolled (2); Steel Products (6); and Titanium Dioxide (2).

Commodities Down in Price

Copper*; and Steel*.

Commodities in Short Supply

Electric/Electronic Components (5); Nylon/Nylon Polymer; Resins; Rubber Products; and Titanium Dioxide (3).

Note: The number of consecutive months the commodity is listed is indicated after each item.


*Reported as both up and down in price.