(June 2009) - PMI rises to 44.8 pct but New orders contracted to 49.2 pct from May high of 51.1 pct

WHAT RESPONDENTS ARE SAYING ...

• "Customer inventory burn is complete and real demand has reappeared." (Machinery)
• "... a lot of people are requoting old business and using favorable pricing to negotiate with their current suppliers." (Computer & Electronic Products)
• "Banks are reluctant to lend to businesses, and until this changes the economy will continue to be weak." (Fabricated Metal Products)
• "Slow June, but firm large orders in July, August and September." (Food, Beverage & Tobacco Products)
• "Market appears to have bottomed out as aftermarket has picked up slightly over the past month." (Transportation Equipment)

MANUFACTURING AT A GLANCE JUNE 2009
Index	Series Index June	Series Index May	Percentage Point Change	Direction	Rate of Change	Trend* (Months)
PMI	44.8	42.8	+2.0	Contracting	Slower	17
New Orders	49.2	51.1	-1.9	Contracting	From Growing	1
Production	52.5	46.0	+6.5	Growing	From Contracting	1
Employment	40.7	34.3	+6.4	Contracting	Slower	11
Supplier Deliveries	50.6	49.8	+0.8	Slower	From Faster	1
Inventories	30.8	32.9	-2.1	Contracting	Faster	38
Customers' Inventories	43.5	46.0	-2.5	Too Low	Faster	3
Prices	50.0	43.5	+6.5	Unchanged	From Decreasing	1
Backlog of Orders	47.5	48.0	-0.5	Contracting	Faster	14
Exports	49.5	48.0	+1.5	Contracting	Slower	9
Imports	46.0	42.5	+3.5	Contracting	Slower	17
OVERALL ECONOMY				Growing	Faster	2
Manufacturing Sector				Contracting	Slower	17

*Number of months moving in current direction.

Economic activity in the manufacturing sector PMI - 44.8% Jun3 2009

Economic activity in the manufacturing sector contracted 
(any number below 50 percent indicates contraction ).
The consensus range for this index was from 41 to 47.5. 
ISM's manufacturing index for the month of June 2009 was 44.8%, may 2009 PMI was 42.8%.

US Stock Indexes Futures up on first day of Q3

U.S. stock futures are pointing to a higher opening Wednesday as investors await data on the manufacturing and housing industries.

Futures are reflecting gains in European markets, which rose after upbeat reports on manufacturing activity in both Britain and the 16 countries that share the euro currency.

Later Wednesday morning, investors will get a reading on manufacturing activity in the U.S. Economists expect activity to have declined in June for the 17th straight month, but at the slowest pace since last August.