ISM manufacturing index hits 60.2 in June; construction spending up 0.4% in May

Jim Young | Bloomberg | Getty Images

A worker uses a heat gun to smooth out the wrinkles on a car seat during production at the Lear Corp. manufacturing facility in Hammond, Indiana.

The Institute for Supply Management’s Manufacturing Index gained significantly in June, surpassing analysts’ expectations for a decline.

The ISM’s Project Management Institute registered 60.2, beating an expected 58 by analysts polled by Thomson Reuters.

A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. The overall economy grew for the 110th consecutive month.

The ISM index measures economic activity in up to 18 industries in the manufacturing sector, including textiles, appliances, food and coal refinement. Of the 18, 17 industries reported in June.

Despite gains, Chair of the ISM Manufacturing Business Survey Committee Timothy R. Fiore said those who reported were concerned about the implications of rising trade tensions on their industries.

“Respondents are overwhelmingly concerned about how tariff related activity is and will continue to affect their business,” Fiore said.

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