Manufacturing Weak But Showing Stability

The "Report On Business" from the National Association of Purchasing Management (NAPM) showed that economic activity in the nation's manufacturing sector declined for the 11th consecutive month during June, following what had been a period of 18 straight months of expansion. But while the NAPM Purchasing Managers' Index (PMI) remains very low, it has moved marginally above the depths of earlier this year, giving rise to hopes that the worst is over, both for the industrial sector and for the U.S. economy as a whole.

At a level of 44.7 during June, the PMI was 2.6 points higher than during May, although still well below the break-even point that separates growth from contraction. A PMI reading above 50 indicates that the manufacturing sector of the economy is expanding, while anything below 50 signals a downturn in the manufacturing economy. In January, the index had bottomed out (we believe) with a reading of 41.2.

This material is specially compiled for Graphic Arts Monthly by Delano Data Insights, which provides economic analysis and forecasts via newsletters and reports covering a variety of industry sectors. For more information, contact Daryl Delano, 30 Flintlocke Drive, Plymouth, Mass. 02360, telephone (508) 746-7180.