According to the recent U.S. Manufacturing ISM report regarding the U.S. Manufacturing PMI– an index that estimate the economic activity in the manufacturing sector in the U.S. – inclined during June to 55.3% after it reached on May 53.5%, i.e. a 1.8 percent points incline.
This incline in the PMI Manufacturing ISM during June shows that the U.S. economy is still starting to pick up again after the PMI index fell in the May report; of the 18 sectors surveyed, 12 manufacturing sectors showed a growth in June.
The report also pointed out that the major oil and gasoline prices declined during June in the U.S. while there were increases in employment, production and new orders.
According to the work done by Roache et. al (2008) named “the effects of economic news on commodity prices: is gold just another commodity?” It was suggested that the PMI Manufacturing ISM might be among the factors to negatively affect gold and silver prices. The decline in gold and silver prices on Friday, July 1st, might have been caused, in part, by the improvement in the June PMI Manufacturing ISM.
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