U.S. Manufacturing Swings to Expansion, ISM Reports

U.S. manufacturing activity expanded in June from a contraction in May, the Institute for Supply Management reported Monday.

ISM’s monthly factory index rose to a reading of 50.9, from 49 in May, the group said in its monthly report.

Figures of more than 50 indicate expansion, while figures below that level show contraction.

The reading was below economists’ median forecast of a 50.5 reading, Bloomberg News reported.

Twelve of the 18 manufacturing groups showed expansion, ISM said. The production index rose by 4.8 points to a 53.4 reading, and new orders increased 3.1 points to 51.9.

ISM’s factory index measures manufacturing components of the economy.