Purchasing Managers’ Index Dips to 53.3% in August

Tempe, AZ, July 1, 2026—The June Manufacturing Purchasing Managers’ Index (PMI) registered 53.3%, 0.7 percentage points lower than in May, according to the Manufacturing ISM Report On Business. 

The overall economy continued in expansion for the 20th month in a row. (A Manufacturing PMI above 47.5 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index expanded for the sixth consecutive month after four straight readings in contraction, registering 56%, down 0.8 percentage point compared to May’s figure of 56.8%. 

The June reading of the Production Index (52.2%) is 2.1 percentage points lower than May’s reading of 54.3%. The Prices Index remained in expansion (or ‘increasing’ territory), registering 73%, a 9.1-percentage point decrease from May’s reading of 82.1%. 

The Backlog of Orders Index registered 50.5%, down 1.7 percentage points compared to the 52.2% recorded in May. 

The Employment Index registered 49.7%, up 1.1 percentage points from May’s figure of 48.6%.

All but one (petroleum & coal products) of the six largest manufacturing industries expanded in June, in the following order: computer & electronic products; machinery; transportation equipment; chemical products; and food, beverage & tobacco products.