June marked the 39th consecutive month of expansion in the US service sector of the economy
June 2006 ISM MANUFACTURING INDEX - PMI
The PMI indicates that the manufacturing economy grew in June for the 37th consecutive month as it registered 53.8%, a decrease of 0.6 percentage point when compared to May's reading of 54.4%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
The June 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 average PMI for January through June (55.4%) corresponds to a 4.6% increase in real gross domestic product (GDP). In addition, if the PMI for June (53.8%) is annualized, it corresponds to a 4% increase in real GDP annually.
June 2006 ISM NON-MANUFACTURING
INDEX - Business Activity
ISM's Non-Manufacturing Business Activity Index in June registered 57% compared to the 60.1% registered in May, indicating a slower rate of growth in business activity in June. The non-manufacturing business activity is continuing to increase for the 39th consecutive month, but at a slower rate.
The industries reporting the highest rates of growth of business activity in June are: Transportation; Business Services; Mining; Retail Trade; Construction; Communication; and Finance & Banking. The one industry reporting contraction of business activity in June is Agriculture.