Growth of Manufacturing Production and New Orders Gained Traction in June. Cost Inflationary Pressures Continued to Build.

The global manufacturing sector ended the first half of 2007 on a positive footing. Following the anticipated US-led slowdown in growth during the opening quarter, June PMI data indicated that rates of expansion for production and new orders had recovered to reach fourteen and eleven-month highs respectively.

At 54.4 in June, the JPMorgan Global Manufacturing PMI remained above the neutral 50.0 mark that separates an improvement in operating conditions from a deterioration for the forty-eighth successive month. Moreover, the PMI currently stands at its highest level since last September.