Updated: 01-Jul-25 10:40 ET

June ISM Manufacturing Index

Updated: 01-Jul-25 10:40 ET

Highlights

• The June ISM Manufacturing Index increased to 49.0% in June (Briefing.com consensus 48.8%) from 48.5% in May.
• The dividing line between expansion and contraction is 50.0%, so the June reading suggests that activity in the manufacturing sector contracted at a slightly slower pace than the prior month.

Key Factors

• The New Orders Index fell to 46.4% from 47.6% in May.
• The Production Index jumped to 50.3% from 45.4% in May.
• The Prices Index edged higher to 69.7% from 69.4% in May.
• The Employment Index decreased to 45.0% from 46.8% in May.
• The Backlog of Orders Index dropped to 44.3% from 47.1% in May.
• The Supplier Deliveries Index slipped to 54.2% from 56.1% in May.
• The New Export Orders Index improved to 46.3% from 40.1% in May.

Big Picture

• The key takeaway from the report is that it has more of a stagflation aura about it (the new orders index and employment index both contracted at a faster pace, while the prices index increased at a faster pace) that will make the Fed's policy deliberations more challenging and the market's view of the Fed's thinking more frustrating.

Category	JUN	MAY	APR	MAR	FEB
Total Index	49.0	48.5	48.7	49.0	50.3
Orders	46.4	47.6	47.2	45.2	48.6
Production	50.3	45.4	44.0	48.3	50.7
Employment	45.0	46.8	46.5	44.7	47.6
Deliveries	54.2	56.1	55.2	53.5	54.5
Inventories	49.2	46.7	50.8	53.4	49.9
Export Orders	46.3	40.1	43.1	49.6	51.4
Prices paid (not seas adj)	69.7	69.4	69.8	69.4	62.4