US ISM Manufacturing Index Rose Unexpectedly, Consumer Sentiment Declines
Friday, July 01, 2011 10:38 AM

The Institute of Supply Management’s manufacturing index climbed unexpectedly to 55.3 in June from 53.5 last month, easing fears of double-dip recession, the Tempe, Arizona-based group said Friday.

Economists had projected the index would drop to 52, according to the median forecast in a Bloomberg News survey. Estimates of the 77 economists ranged from 49 to 55. The ISM index had plunged to 53.5 percent in May from 60.4 percent in April.

The index also showed that the manufacturing in the Europe and China slowed during the month of June. China’s factory index fell in June to the weakest level since February 2009, while in the 17-nation euro area, a gauge slipped to an 18-month low. German manufacturing expanded at the slowest pace in 17 months, while Italy, Ireland, Spain and Greece contracted.

In another report, the University of Michigan survey showed that the consumer sentiment data, which showed a decline during the month of June. The index of consumer sentiment declined to 71.5 percent at the end of June from 74.3 in May, according to the Thomson Reuters/University of Michigan survey. Economists had expected a final reading of 72 for consumer sentiments in June.