The latest Purchasing Managers Index (PMI) data for June, released by the Institute for Supply Management (ISM), shows that US manufacturing remained in contraction territory, marking the 19th time in the past 20 months. The PMI registered at 48.5, below the pivotal 50-point threshold that distinguishes between expansion and contraction in the sector.
According to ISM’s report, despite this overall contraction, eight out of eighteen manufacturing sectors reported growth in June. This includes industries such as Printing & Related Support Activities, Petroleum & Coal Products, and Primary Metals.
Key indices within the PMI also reflected challenging conditions. The New Order Index, although showing improvement from May, remained in contraction at 49.3. Similarly, the Production Index declined to 48.5, indicating decreased manufacturing output compared to the previous month. The Price Index decreased to 52.1, suggesting a moderated rise in input costs.
Timothy Fiore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee, commented on the findings, noting persistent weaknesses in demand and production. He highlighted ongoing challenges in supply chains and inventory management, influenced by current economic conditions and corporate strategies.
Looking ahead, the PMI data underscores ongoing pressures on the manufacturing sector, reflecting broader economic trends and their impact on industrial activity in the US.
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