TOP PERFORMING INDUSTRIES

The 12 industries reporting growth in June — listed in order — are: Petroleum & Coal Products; Chemical Products; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Computer & Electronic Products; Paper Products; Fabricated Metal Products; Primary Metals; Miscellaneous Manufacturing; Textile Mills; and Machinery.

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)

COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price

Aluminum (7); Chemicals (3); Copper Based Products (3); Gasoline (3); Natural Gas (5); Polypropylene Resins; Soybean Oil; Stainless Sheet Steel; Stainless Steel (6); and Steel (4).

Commodities Down in Price

Aluminum is the only commodity reported down in price.

Commodities in Short Supply

No commodities are reported in short supply.

Reported as both up and down in price.

JUNE 2007 MANUFACTURING INDEX SUMMARIES
PMI

Manufacturing growth accelerated in June as the PMI registered 56 percent, an increase of 1 percentage point when compared to May''s reading of 55 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A PMI in excess of 41.9 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates that both the overall economy and the manufacturing sector are growing. """"The past relationship between the PMI and the overall economy indicates that the PMI average for January through June (53 percent) corresponds to a 3.4 percent increase in real gross domestic product (GDP) annually. In addition, if the PMI for June (56 percent) is annualized, it corresponds to a 4.4 percent increase in real GDP annually.""""

New Orders

ISM''s New Orders Index rose to 60.3 percent in June. The index is 0.7 percentage point higher than the 59.6 percent reported in May. A New Orders Index above 49.1 percent, over time, is generally consistent with an increase in the Census Bureau''s series on manufacturing orders (in constant 2000 dollars). Eleven industries reported increases during June: Petroleum & Coal Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Chemical Products; Food, Beverage & Tobacco Products; Primary Metals; Fabricated Metal Products; Miscellaneous Manufacturing; Computer & Electronic Products; Paper Products; and Machinery.

Production

ISM''s Production Index registered 62.9 percent in June, which is 4.6 percentage points higher than the 58.3 percent reported in May. June is the fifth consecutive month of production growth for manufacturers. An index above 49.8 percent, over time, is generally consistent with an increase in the Federal Reserve Board''s Industrial Production figures. Of the industries reporting in June, 12 registered growth: Nonmetallic Mineral Products; Chemical Products; Food, Beverage & Tobacco Products; Paper Products; Plastics & Rubber Products; Computer & Electronic Products; Fabricated Metal Products; Primary Metals; Machinery; Transportation Equipment; Miscellaneous Manufacturing; and Furniture & Related Products.

Employment