Wednesday the Institute for Supply Managment published its manufacturing report for June 2009. It's overall index (PMI) bumped up for the sixth straight month and stood at 44.8%. The reading suggests, "the overall economy grew for the second consecutive month" in June.
The reading also shows the overall manufacturing sector still on track for a return to growth in the fourth quarter of this year.
Norbert J. Ore, chair of ISM's Survey Committee was quoted as saying:
"Manufacturing continues to contract at a slower rate, but the trends in the indexes are encouraging as seven of 18 industries reported growth in June. Most encouraging is the gain in the Production Index, which is up 12.1 percentage points in the last two months to 52.5 percent. Aggressive inventory reduction continues and indications are that the de-stocking cycle is at or near the end in most industries."
With the June ISM index we have yet another concrete indictor that recovery has begun for this cycle.