American manufacturing expanded for the fourth straight month in June, hitting the strongest reading in 16 months as the outlook for new orders and production improved, The Associated Press reports.
The Institute for Supply Management says its manufacturing index rose to 53.2 last month from 51.3 in May. Anything above 50 signals growth.
The report suggests U.S. factories are showing some signs of stability after being pummeled at the beginning of last year by a rising dollar, shuttered oil production and weak global economic growth.
The ISM index stayed below 50 from October through February, before shaking off these setbacks beginning in March. Orders began to rebound as factories adapted to the financial headwinds and as the dollar’s appreciation became tempered and oil prices stopped plunging.
“Today’s report is clearly a positive development,” says Andrew Hunter, assistant economist at Capital Economics, adding that the report suggests that the long-suffering manufacturing sector may be finally starting to recover.
Still, global demand appears to remain weak, so U.S. manufacturing is unlikely to enjoy a robust turnaround in the coming months, Hunter cautions.
