Purchasing Managers' Index Declined Slightly in June

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Purchasing Managers' Index Declined Slightly in June

Tempe, AZ, July 3, 2023-The June Manufacturing Purchasing Managers' Index (PMI) registered 46%, 0.9 percentage point lower than the 46.9% recorded in May, say the nation's supply executives in the latest Manufacturing ISM Report On Business. Regarding the overall economy, this figure indicates a seventh month of contraction after a 30-month period of expansion. 

The New Orders Index remained in contraction territory at 45.6%, three percentage points higher than the figure of 42.6% recorded in May. 

The Production Index reading of 46.7% is a 4.4-percentage point decrease compared to May’s figure of 51.1%. The Prices Index registered 41.8%, down 2.4 percentage points compared to the May figure of 44.2%. 

The Backlog of Orders Index registered 38.7%, 1.2 percentage points higher than the May reading of 37.5%. 

The Employment Index dropped into contraction, registering 48.1%, down 3.3 percentage points from May’s reading of 51.4%.

The Supplier Deliveries Index figure of 45.7% is 2.2 percentage points higher than the 43.5% recorded in May. This figure, along with the previous seven, is the Supplier Deliveries Index’s lowest reading since March 2009 (43.2%). 

The Inventories Index dropped 1.8 percentage points to 44%; the May reading was 45.8%. 

The New Export Orders Index reading of 47.3% is 2.7 percentage points lower than May’s figure of 50%. 

The Imports Index remained in contraction territory, registering 49.3%, two percentage points higher than the 47.3% reported in May.

The four manufacturing industries that reported growth in June are printing & related support activities; nonmetallic mineral products; primary metals; and transportation equipment. The 11 industries reporting contraction in June, in the following order, are plastics & rubber products; wood products; textile mills; chemical products; miscellaneous manufacturing; electrical equipment, appliances & components; computer & electronic products; paper products; fabricated metal products; food, beverage & tobacco products; and machinery.