New orders climbed to the highest this year, revealing a robust manufacturing sector. With the added momentum in the industrials space, investors can consider smart-beta exchange traded fund options to capture returns.
The Institute for Supply Management’s manufacturing index was at 55.3 last month, slightly lower than the five-month high of 55.4 in May, reports Lorraine Woellert for Bloomberg. Any reading above 50 signals an expansion.
“Manufacturing is back on track,” Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc., said in the article. “It’s growing at a solid pace.”
The gauge of new orders also jumped to its highest since December. The production measure was at 60, compared to 61 in May, for the best back-to-back levels since the end of 2013.
“It’s a good report for the overall economy,” John Silvia, chief economist at Wells Fargo Securities LLC, said in the article. The ISM report “is consistent with the continued gains in industrial production.”
Looking ahead, traders will be watching the employment situation and jobless claims Thursday.