June was a very strong month for Markit's US manufacturing sample where the PMI came in at 57.3 vs 57.5 in the mid-month flash reading and compared to 56.4 in May. New orders, centered nearly entirely on domestic demand, lead the report, at 61.2 vs an already very strong 58.8 in May. Backlog orders are unchanged at 56.0 which is very strong for this reading. Lagging behind are export orders which barely show any monthly growth, at 50.6.
Output, at 61.0, is already very strong and looks to strengthen further given the strength in orders. Employment also looks to strengthen though growth here currently remains no better than moderate, at 54.0. Inventories are being drawn down while price pressures, though moderate, are firming slightly, to 57.6 for input prices vs May's 56.4 and at 52.1 for output prices vs 50.4.
The manufacturing sector is right at the forefront of the nation's economy. Watch for the ISM report coming up at 10:00 a.m. ET this morning. The Dow is moving to opening highs following today's report.