Purchasing Managers Index Declines to Lowest Reading Since June 2020

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Purchasing Managers Index Declines to Lowest Reading Since June 2020

Tempe, AZ, July 1, 2022-The June Manufacturing Purchasing Managers Index (PMI) registered 53%, down 3.1 percentage points from the reading of 56.1% in May, according to the latest Manufacturing ISM Report On Business. This figure indicates expansion in the overall economy for the 25th month in a row after a contraction in April and May 2020. This is the lowest Manufacturing PMI reading since June 2020, when it registered 52.4%. 

The New Orders Index reading of 49.2% is 5.9 percentage points lower than the 55.1% recorded in May. 

The Production Index reading of 54.9% is a 0.7-percentage point increase compared to May’s figure of 54.2%. 

The Prices Index registered 78.5%, down 3.7 percentage points compared to the May figure of 82.2%. 

The Backlog of Orders Index registered 53.2%, 5.5 percentage points below the May reading of 58.7%. 

The Employment Index contracted for a second straight month at 47.3%, 2.3 percentage points lower than the 49.6% recorded in May. 

The Supplier Deliveries Index reading of 57.3% is 8.4 percentage points lower than the May figure of 65.7%. 

The Inventories Index registered 56%, 0.1 percentage point higher than the May reading of 55.9%. 

The New Export Orders Index reading of 50.7% is down 2.2 percentage points compared to May’s figure of 52.9%.

The Imports Index climbed into expansion territory, up 2 percentage points to 50.7% from 48.7 percent in May.

Fifteen manufacturing industries reported growth in June, in the following order: apparel, leather & allied products; textile mills; printing & related support activities; computer & electronic products; machinery; electrical equipment, appliances & components; primary metals; nonmetallic mineral products; plastics & rubber products; transportation equipment; fabricated metal products; miscellaneous manufacturing; petroleum & coal products; food, beverage & tobacco products; and chemical products. The three industries reporting contraction in June compared to May are paper products; wood products; and furniture & related products.