The US manufacturing sector picked up in June according to the Institute for Supply Management report. In fact, it is the fastest growth in manufacturing in 3 years.
The ISM said its purchasing managers index climbed to 57.8 in June from 54.9 in May, with a reading above 50 indicating growth in the manufacturing sector. Economists had forecast a 55.2 print.
The positive surprise in US manufacturing came as the production index jumped to 62.4 in June from 57.1 in May and the new orders index surged up to 63.5 from 59.5.
The positive surprise in manufacturing shifts sentiment towards the Bulls. Remember, much of the bearish commentary over the last few months was supported by the fact that US manufacturing was contracting for all of 2017. June’s surprise number breaks that bearish trend.