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May 2013 
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Manufacturing sector grows amid inflation concerns
Manufacturing sector grows amid inflation concerns 
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The Institute for Supply Management (ISM) reports that its manufacturing index rose to 56 during June, according to www.baltimoresun.com. An index reading above 50 signifies growth, and a reading below 50 signifies a decrease.
Manufacturers are building more factories and plants, probably as a result of healthy consumer spending in the U.S. New orders, production and employment were significant contributors to growth. In fact, the ISM report is seen as a possible sign of recovery for the U.S. economy.
However, inflation still is a concern. Prices for most raw materials rose (though more moderately than they did in May), and Federal Reserve officials say if inflation doesn't recede, it could be a significant risk for the economy. And though "core" prices reportedly moderated in May, there is no trend demonstrating that costs are under control.
According to ISM, the top-performing industries in June included petroleum and coal products; chemical products; plastics and rubber products; fabricated metal products; primary metals; nonmetallic mineral products; and machinery.
Construction spending increased by 0.9 percent during May, which was the biggest gain in about 1 1/2 years.
7/13/2007
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