With the Purchasing Managers Index at 53%, the manufacturing sector fell 3.1 percentage points in June compared to the prior month’s reading of 56.1%. This is the lowest reading since June 2020. Despite this, any number above 50% indicates expansion. And ISM reports that the overall economy is continuing to expand, achieving its 25th consecutive month of growth.
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Here is the breakdown of the June PMI:
- New Orders Index: 49.2%, a 5.9% decrease month-over-month
- Production Index: 54.9%, a .7% increase month-over-month
- Prices Index: 78.5%, a 3.7% decrease month-over-month
- Backlog of Orders Index: 53.2%, a 5.5% decrease month-over-month
- Employment Index: 47.3%, a 2.3% decrease month-over-month
- Supplier Deliveries Index: 57.3%, an 8.4% decrease month-over-month
- Inventories Index: 56%, a .1% increase month-over-month
- New Export Orders Index: 50.7%, a 2.2% decrease month-over-month
- Imports Index: 50.7%, a 2% increase month-over month
“The U.S. manufacturing sector continues to be powered — though less so in June — by demand while held back by supply chain constraints. Sentiment remained optimistic regarding demand, with three positive growth comments for every cautious comment. Panelists continue to note supply chain and pricing issues as their biggest concerns,” Timothy R. Fiore, ISM chairman, said.
June saw growth in 15 manufacturing industries, including:
- Apparel, Leather & Allied Products
- Textile Mills
- Printing & Related Support Activities
- Computer & Electronic Products
- Electrical Equipment, Appliances & Components
- Primary Metals
- Nonmetallic Mineral Products
- Plastics & Rubber Products
- Transportation Equipment
- Fabricated Metal Products
- Miscellaneous Manufacturing
- Petroleum & Coal Products
- Food, Beverage & Tobacco Products
- Chemical Products
Paper Products, Wood Products and Furniture & Related Products reported a decrease in June compared to May.