Fighting to Expand

Chart of the Week for July 11-17, 2003

The Institute for Supply Management manufacturing index report for June was below expectations. This index is based on surveys of 300 purchasing managers nationwide regarding manufacturing activity. The composite consists of nine similar indexes including; new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export orders, and import orders. Economists had hoped for an index level above the 50 mark which would signal an expansion in the manufacturing sector. Instead the index came in slightly below. Any level below 50 is considered a signal of contraction. However, the June report does give cause for optimism as it continues the recent upward trend and appears to be on the verge of signaling expansion.

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