ISM manufacturing climbs to five-month high

The latest reading on US manufacturing from the Institute of Supply Management came in at 53.5, and the factory index was the best reading of the year.

Economists had estimated that the index rose to 53.2 in June from 52.8 in May, according to Bloomberg.

The employment index grew 3.8% to 55.5, while new orders ticked up to 56.0 from 55.8.

“Looking ahead, the recent pickup in the forward-looking survey components suggests a modest improvement in output and employment for domestic manufacturing,” wrote Barclays economists in a note to clients after the release. “
We do not expect a robust rebound given the lingering effects of a stronger dollar and lower oil prices; however, we view a modest H2 manufacturing rebound as increasingly likely.”

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