ISM Purchasing Managers' Index Rose to 49% in June
Tempe, AZ, July 1, 2025-The Manufacturing Purchasing Managers' Index (PMI) registered 49% in June, a 0.5-percentage point increase compared to the 48.5% recorded in May, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The overall economy continued in expansion for the 62nd month after one month of contraction in April 2020.
The New Orders Index contracted for the fifth month in a row following a three-month period of expansion; the figure of 46.4% is 1.2 percentage points lower than the 47.6% recorded in May.
The June reading of the Production Index (50.3%) is 4.9 percentage points higher than May’s figure of 45.4, returning the index to expansion territory.
The Prices Index remained in expansion (or ‘increasing’) territory, registering 69.7%, up 0.3 percentage point compared to the reading of 69.4% reported in May.
The Backlog of Orders Index registered 44.3%, down 2.8 percentage points compared to the 47.1% recorded in May.
The Employment Index registered 45%, down 1.8 percentage points from May’s figure of 46.8%.
The Supplier Deliveries Index indicated slower delivery performance, though the pace picked up somewhat: The reading of 54.2% is down 1.9 percentage points from the 56.1% recorded in May. (Supplier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.)
The Inventories Index registered 49.2%, up 2.5 percentage points compared to May’s reading of 46.7%.
The New Export Orders Index reading of 46.3% is 6.2 percentage points higher than the reading of 40.1% registered in May.
The Imports Index gained back its loss from the previous month, registering 47.4%, 7.5 percentage points higher than May’s reading of 39.9%.
The nine manufacturing industries reporting growth in June-listed in order-are apparel, leather & allied products; petroleum & coal products; nonmetallic mineral products; miscellaneous manufacturing; furniture & related products; computer & electronic products; machinery; food, beverage & tobacco products; and electrical equipment, appliances & components. The six industries reporting contraction in June-in the following order-are textile mills; wood products; paper products; chemical products; transportation equipment; and fabricated metal products.