Jul 1: ISM Index Up

The ISM Manufacturing Index increased to 44.8 in June, was expected to increase to 44.6, from 42.8 in May from April’s 40.2 level.  The index had been below 50 for the past 17 months, signifying contraction on the manufacturing levels, but recent rising levels can serve as an indication that the rate of decline is diminishing with prospects of an anticipated recovery.  The following 7 industries reported growth over the month: Petroleum & Coal Products; Printing & Related Support Activities; Wood Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Chemical Products; and Primary Metals.  The remaining 11 industries in the industry showed contraction: Apparel, Leather & Allied Products; Furniture & Related Products; Machinery; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Textile Mills; Transportation Equipment; Food, Beverage & Tobacco Products; and Fabricated Metal Products.

Construction Spending for May decreased by 0.9% to $964.0 billion, more than the expected 0.6% decrease, after having increased unexpectedly by 0.6% in April (revised from a 0.8% increase).  Over the year, spending declined by 11.6% from the May 2008 $1,090.7 billion level of spending.

Pending Home Sales increased by 0.1% in May to an index level of 90.7, less than the expected 2% increase, after increasing by 7.1% in April.  Albeit small, this is the fourth consecutive monthly gain in the index. 

Today the monthly figures for Domestic Vehicle Sales are also set to be announced.

Upcoming Releases

Unemployment Rate (07/02 at 8:30 AM EST)
Nonfarm Payrolls (07/02 at 8:30 AM EST)
Factory Orders (07/02 at 10:00 AM EST)