The Institute for Supply Management reported that the Manufacturing PMI fell to 46% in May, 0.9 percentage points lower than the recorded 46.9% in June. This is the seventh consecutive month of contraction for the Manufacturing PMI.
Here’s the breakdown of the June PMI:
- New Orders Index: 45.6%, a 3 percentage point increase month-over-month
- Production Index: 46.7%, a 4.4 percentage point decrease month-over-month
- Prices Index: 41.8%, a 2.4 percentage point decrease month-over-month
- Backlog of Orders Index: 38.7%, a 1.2 percentage point increase month-over-month
- Employment Index: 48.1%, a 3.3 percentage point decrease month-over-month
- Supplier Deliveries Index: 45.7%, a 2.2 percentage point increase month-over-month
- Inventories Index: 44%, a 1.8 percentage point decrease month-over-month
- New Export Orders Index: 47.3%, a 2.7 percentage point decrease month-over-month
- Imports Index: 49.3%, a 2 percentage point increase month-over-month
“The U.S. manufacturing sector shrank again, with the Manufacturing PMI® losing ground compared to the previous month, indicating a faster rate of contraction. The June composite index reading reflects companies continuing to manage outputs down as softness continues and optimism about the second half of 2023 weakens,” said Timothy R. Fiore, ISM Chairman.
Four manufacturing industries saw growth in June:
- Printing and Related Support Activities
- Nonmetallic Mineral Products
- Primary Metals
- Transportation Equipment
Plastics & Rubber Products; Wood Products; Textile Mills; Chemical Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Paper Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; and Machinery all reported a decrease in June.