June manufacturing data supportive of LTL demand

Manufacturing activity expanded for a sixth consecutive month in June, albeit at a more subdued pace. A survey of manufacturing supply executives returned a 53.3 reading for the recent month, 70 basis points below analysts' expectations and the May result. The June reading was the second-highest this year and is consistent with 2% real GDP growth, a Wednesday report said.

A reading above 50 for the Institute for Supply Management's Manufacturing PMI signals expansion, while one below 50 indicates contraction. The group said that when the index sustains a level above 47.5 over time, the overall economy usually improves.

The new orders subindex—an indicator of future activity—was also higher for a sixth straight month at 56. That was 80 bps lower than the May update.  Of the six largest industries tracked, four reported an increase in orders (computer and electronic, machinery, transportation equipment and chemical products).

"[New orders] demand sentiment was positive in June, with a 2.7-to-1 ratio of positive to negative comments," said Susan Spence, chair of the ISM Manufacturing Business Survey Committee.

The manufacturing complex has an outsized impact on less-than-truckload

Fuente original: Yahoo Finance (https://finance.yahoo.com/economy/articles/june-manufacturing-data-supportive-ltl-165910567.html)