The manufacturing sector turned mildly negative in May, then mildly positive in June, according to a report by Michael Montgomery, U.S. economist for IHS Global Insight. The 2-month average is virtually neutral and the 3-month average is a token plus—all 12-month averages are very close to June readings.
The ISM purchasing managers’ index (PMI) says that U.S. manufacturing is essentially stalled. “The Market Economics version says that there is modest growth,” said Montgomery.”
That means that the manufacturing operating environment is almost identical to what it has been for most of the last year, with no signs of improvement or deterioration, according to Montgomery. “Similar conditions of near stagnation exist overseas, with Europe on the underwater side of neutral but clawing back toward neutral, China just under neutral, and only Japan showing any signs of a recovery that is gaining momentum,” he said. “Worldwide manufacturing is stuck in the mud..