U.S. Manufacturing Growth Slows in June Amid Geopolitical Pressures
Event summary
- U.S. Manufacturing PMI® registered at 53.3% in June, down 0.7 percentage points from May.
- New Orders and Production Indexes grew slower compared to the previous month.
- Employment Index improved but remained in contraction for the 33rd consecutive month.
- Prices Index dropped by 9.1 percentage points, indicating slowing inflation pressures.
The big picture
U.S. manufacturing activity remains in expansion for the sixth consecutive month but at a slower pace. The sector faces ongoing challenges from geopolitical tensions, tariff policies, and moderating demand visibility. The overall economy has been expanding for 20 months, but the manufacturing slowdown signals potential headwinds ahead.
What we're watching
- Geopolitical Risks
- How the Iran war and tariff uncertainty will continue to impact raw material prices and supply chain stability.
- Employment Trends
- Whether the manufacturing sector can sustain employment growth amid slowing production and new orders.
- Inflation Dynamics
- The pace at which inflation pressures ease, particularly in key commodities like steel and aluminum.