Manufacturing Recovering

Manufacturing continues to show signs life as inventories have been depleted. The May Manufacturing ISM report showed a continued pick-up in activity as the index rose to 55 from 54.7 in April, and the highest level since April 2006. Any reading over 50 indicates growth.

The Institute for Supply Management's survey of manufacturing conditions shows slight increases for production, new orders, and new export orders. Prices paid have eased back to 71, from the recent high of 73 last month, as energy and commodity prices remain elevated. Employment softened slightly to 51.9 from 53.1. All categories are now back above 50 except for inventory figures. Net, this is a positive report for future growth.