Manufacturing rebounds.

TEMPE, AZ -- "Following a weak first quarter, the manufacturing sector rebounded in a strong fashion during the second quarter." That's according to Norbert J. Ore, chair of ISM's Manufacturing Business Survey Committee. The trade group said June manufacturing expanded at its fastest pace since April 2006.

The May PMI was 56%, ISM (ism.ws) reported. New orders were at 60.3%, up 0.7 of a point from the previous month. Production reached 62.9%, up 4.6 points from April. Orders backlogs were up one point, while customers' inventories were down one point. Inventories contracted.

Economic activity in the manufacturing sector expanded in June for the fifth consecutive month, while the overall economy grew for the 68th consecutive month, said ISM. According to Ore, business is on strong footing. "This performance appears sustainable due to the current strength in new orders and production," he said.

                      Feb.  Mar.  Apr.  May   June

PMI                   52.3  50.9  54.7  55.0  56.0
New orders            54.9  51.6  58.5  59.6  60.3
Production            54.1  53.0  57.3  58.3  62.9
Inventories           44.6  47.5  46.3  46.1  45.3
Customer inventories  53.0  48.0  47.0  48.0  47.0
Backlogs              51.5  47.0  54.5  52.5  53.5

Source: Institute for Supply Management, July 2, 2007