Updated: 01-Jul-24 10:40 ET

June ISM Manufacturing Index

Updated: 01-Jul-24 10:40 ET

Highlights

• The June ISM Manufacturing Index checked in at 48.5% (Briefing.com consensus 49.1%) versus 48.7% in May.
• The dividing line between expansion and contraction is 50.0%, so the June reading suggests there was a faster pace of contraction in the manufacturing sector last month.
• This was the third straight month (and 19th out of 20) that economic activity in the manufacturing sector contracted.

Key Factors

• The New Orders Index increased to 49.3% from 45.4%.
• The Prices Index dropped to 52.1% from 57.0%.
• The Employment Index fell to 49.3% from 51.1%.
• The Backlog of Orders Index dipped to 41.7% from 42.4%.
• The Supplier Deliveries Index rose to 49.8% from 48.9%.
• The Production Index decreased to 48.5% from 50.2%.
• The New Export Orders Index dropped to 48.8% from 50.6%.

Big Picture

• The key takeaway from the report is that each component remained in a state of contraction -- except prices, which slowed from the prior month -- signaling a state of subdued activity for the manufacturing sector that fits with a slowing economy.

Category	JUN	MAY	APR	MAR	FEB
Total Index	48.5	48.7	49.2	50.3	47.8
Orders	49.3	45.4	49.1	51.4	49.2
Production	48.5	50.2	51.3	54.6	48.4
Employment	49.3	51.1	48.6	47.4	45.9
Deliveries	49.8	48.9	48.9	49.9	50.1
Inventories	45.4	47.9	48.2	48.2	45.3
Export Orders	48.8	50.6	48.7	51.6	51.6
Prices paid (not seas adj)	52.1	57.0	60.9	55.8	52.5