The 11 industries reporting growth in production during the month of June — listed in order — are: Petroleum & Coal Products; Nonmetallic Mineral Products; Printing & Related Support Activities; Wood Products; Paper Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Chemical Products; Miscellaneous Manufacturing; Fabricated Metal Products; and Computer & Electronic Products. The five industries reporting decreases in production in June — listed in order — are: Furniture & Related Products; Apparel, Leather & Allied Products; Textile Mills; Transportation Equipment; and Machinery.

Employment

ISM''s Employment Index registered 40.7 percent in June, which is 6.4 percentage points higher than the 34.3 percent reported in May. This is the 11th consecutive month of decline in employment. An Employment Index above 49.7 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Three of the 18 manufacturing industries reported growth in employment in June: Petroleum & Coal Products; Nonmetallic Mineral Products; and Miscellaneous Manufacturing. The 13 industries that reported decreases in employment during June — listed in order — are: Furniture & Related Products; Apparel, Leather & Allied Products; Textile Mills; Electrical Equipment, Appliances & Components; Machinery; Primary Metals; Fabricated Metal Products; Paper Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Chemical Products; Transportation Equipment; and Plastics & Rubber Products.

Supplier Deliveries

The delivery performance of suppliers to manufacturing organizations was slower in June as the Supplier Deliveries Index registered 50.6 percent, which is 0.8 percentage point higher than the 49.8 percent registered in May. This is the first month that the Supplier Deliveries Index has been above 50 percent, following eight months of faster delivery performance. A reading above 50 percent indicates slower deliveries.

The five industries reporting slower supplier deliveries in June are: Printing & Related Support Activities; Furniture & Related Products; Fabricated Metal Products; Transportation Equipment; and Chemical Products. The three industries reporting faster deliveries in June are: Primary Metals; Plastics & Rubber Products; and Computer & Electronic Products.

Inventories

Manufacturers'' inventories contracted in June as the Inventories Index registered 30.8 percent, which is 2.1 percentage points lower than May''s reading of 32.9 percent. An Inventories Index greater than 42.6 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis'' (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

Textile Mills is the only one of the 18 manufacturing industries reporting higher inventories in June. The 13 industries that reported decreases in June — listed in order — are: Plastics & Rubber Products; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Computer & Electronic Products; Machinery; Furniture & Related Products; Paper Products; Fabricated Metal Products; Transportation Equipment; Miscellaneous Manufacturing; Chemical Products; and Food, Beverage & Tobacco Products.

Customers'' Inventories

The ISM Customers'' Inventories Index registered 43.5 percent in June, 2.5 percentage points lower than the 46 percent reported in May. The index indicates that respondents believe their customers'' inventories are too low at this time. This is the third consecutive month the Customers'' Inventories Index has been below 50 percent, following eight months above 50 percent.

Two industries reported higher customers'' inventories during June: Furniture & Related Products; and Chemical Products. The 10 industries that reported lower customers'' inventories during June — listed in order — are: Primary Metals; Nonmetallic Mineral Products; Textile Mills; Machinery; Printing & Related Support Activities; Plastics & Rubber Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; and Transportation Equipment.

Prices

The ISM Prices Index registered 50 percent in June, 6.5 percentage points higher than the 43.5 percent reported in May. Since the index is at the mid-point of 50, this indicates that manufacturers are paying the same prices on average when compared to the previous month. While 22 percent of respondents reported paying higher prices and 22 percent reported paying lower prices, 56 percent of supply executives reported paying the same prices as in May. A Prices Index above 47.6 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Index of Manufacturers Prices.

The eight industries reporting paying increased prices during the month of June — listed in order — are: Plastics & Rubber Products; Primary Metals; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Transportation Equipment; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; and Fabricated Metal Products. The eight industries that reported paying lower prices during June — listed in order — are: Petroleum & Coal Products; Printing & Related Support Activities; Furniture & Related Products; Textile Mills; Paper Products; Machinery; Computer & Electronic Products; and Chemical Products.

Backlog of Orders

ISM''s Backlog of Orders Index registered 47.5 percent in June, 0.5 percentage point lower than the 48 percent reported in May. Of the 84 percent of respondents who reported their backlog of orders, 21 percent reported greater backlogs, 26 percent reported smaller backlogs, and 53 percent reported no change from May.

The six industries reporting increased order backlogs in June — listed in order — are: Plastics & Rubber Products; Primary Metals; Printing & Related Support Activities; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; and Miscellaneous Manufacturing. The eight industries that reported decreases in order backlogs during June — listed in order — are: Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Furniture & Related Products; Machinery; Transportation Equipment; Computer & Electronic Products; Chemical Products; and Fabricated Metal Products.

New Export Orders