Purchasing Managers' Index Inched Down to 48.5% in June

Tempe, AZ, July 1, 2024-The Manufacturing Purchasing Managers’ Index (PMI) registered 48.5% in June, down 0.2 percentage point from the 48.7% 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 50th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.5%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index remained in contraction territory, registering 49.3%, 3.9 percentage points higher than the 45.4% recorded in May.

The June reading of the Production Index (48.5%) is 1.7 percentage points lower than May’s figure of 50.2%. 

The Prices Index registered 52.1%, down 4.9 percentage points compared to the reading of 57 percent in May. 

The Backlog of Orders Index registered 41.7%, down 0.7 percentage point compared to the 42.4% recorded in May. 

The Employment Index registered 49.3%, down 1.8 percentage points from May’s figure of 51.1%.

The Supplier Deliveries Index remained in “faster” territory, registering 49.8%, 0.9 percentage point higher than the 48.9% 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 45.4%, down 2.5 percentage points compared to May’s reading of 47.9%.

The New Export Orders Index reading of 48.8% is 1.8 percentage points lower than the 50.6% registered in May. 

The Imports Index dropped into contraction territory, registering 48.5%, 2.6 percentage point lower than the 51.1% reported in May.”

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