Economy

ISM: US Manufacturing Grew at a Slower Pace in June
Written by David Schollaert
July 5, 2022
US manufacturing activity expanded at a much slower pace in June than in May. The employment, new orders, and prices paid indexes all fell month-on-month (MoM), according to the Institute for Supply Management (ISM).
June’s Manufacturing PMI fell to 53%, a 3.1-percentage-point decline compared to a reading of 56.1% in May. The measure came in weaker than the market expectation of 54.9%. The index reading above 50% indicates growth in the manufacturing sector. Despite June’s decline, the measure marks the 25th consecutive month of expansion since the Covid-19 outbreak in the spring of 2020.
“The U.S. manufacturing sector continues to be powered — though less so in June — by demand while held back by supply chain constraints,” said Timothy Fiore, chairman of ISM’s Manufacturing Business Survey Committee. “Despite the Employment Index contracting in May and June, companies improved their progress on addressing moderate-term labor shortages at all tiers of the supply chain.”
- The Employment Index registered 47.3% in June. The reading was 2.3 percentage points lower than May’s 49.6%.
- The New Orders Index registered 49.2% in June, down 5.9 percentage points from May’s reading of 55.1%.
- The New Export Orders Index was 50.7% last month, down 2.2. percentage points compared to the May reading of 52.9%.
- The Inventories Index registered 56% in June; 0.1 percentage points higher than 55.9% in May.
“There are signs of new order rates softening,” Fiore said. “But the root cause is difficult to determine.” Possibilites include a combination of lower demand and long lead times causing orders to be cancelled. Still, “employment activity remains strongly positive in spite of the uncertainty with new order rates,” he said.
An interactive history ISM Manufacturing Report on Business PMI index is available on our website. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest in Economy

Architecture firms struggle through April
For the third month in a row, architecture firms reported a reduction in billings through April, according to the latest Architecture Billings Index release.

House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.

Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.

Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).

Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)