Manufacturing expanded in June after shrinking in May, survey says

WASHINGTON -- Growth returned to U.S. manufacturing sector in June after a one-month contraction, the Institute for Supply Management said Monday.

The group’s manufacturing index rose to 50.9 from 49 in May, which was a four-year low. A figure above 50 suggests business in the factory sector is expanding. The index is based on a survey of purchasing managers at manufacturing firms.

Analysts had forecast a return to growth. The June figure was slightly above the projection of 50.6.

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ISM’s index for new orders, a sign of future growth, jumped to 51.9 in June from 48.8 the previous month.

Only four of the 18 manufacturing subsectors tracked by ISM reported contraction in June: textile mills, transportation equipment, chemical products and computer and electronic products.

But the news was not all good.

The manufacturing employment index dropped to 48.7 from May’s 50.1, a negative sign preceding the federal government’s report due Friday on the job market in June. In May, payrolls at manufacturers shrank by 8,000 jobs, the third straight monthly decline.

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