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| Index | 54.3 | 57.3 |
Highlights
The manufacturing second expanded for the fourth consecutive month in June with a seasonally adjusted reading of 54.3.
Production was at 57.0 in June, slightly lower than the 57.3 in May, but still near levels that are the highest level in over four years. Order levels remained expansionary as well, rising to 53.5 in June.
Prices, while still elevated showed a dramatic decline in June, with the reading falling to 72.8 from 82.7 in May. At the same time, delivery times eased somewhat, indicating fewer logistics pressures. This reading fell to 60.9 from 65.7 in May.
The services PMI rose to 59.8 in June from 56.0 the month before, and has been above 50 since December.
Definition
The SVME (Schweizerischer Verband für Materialwirtschaft und Einkauf) Association for Purchasing and Supply Management's Purchasing Managers' Index (PMI) is produced in conjunction with Credit Suisse. The PMI provides an estimate of manufacturing business activity for the preceding month by using information obtained from a representative sector of purchasing managers. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting).
Description
The PMI is very sensitive to the business cycle and tends to match growth or decline in the economy as a whole. To construct the PMI the Swiss Association of Purchasing and Materials Management conducts monthly surveys of purchasing executives on their performance in the current month versus the previous period. Because the amount of materials ordered by purchasing managers parallels the level of manufacturing production, the PMI is a gauge of production growth. The results are indexed with a centerline of 50; values above 50 indicate expectations of expansion and values below 50 indicate expectations of contraction for the manufacturing sector.