U.S. June ISM Manufacturing - Some easing in inflationary pressures
June’s ISM manufacturing index of 53.3 is down from 54.0 in May but still above the 52.7 seen in both March and April. Detail shows some easing of inflationary pressure. Perhaps more notable is an unusually large downward revision to the S and P manufacturing PMI, to 53.9 from 55.7, released 15 minutes earlier. This is also down from April’s 54.5.
The ISM prices paid index does not contribute to the composite but at 73.0 is down from 82.1 in May and the lowest since February, if still stronger than every month in 2025.
The delivery times index does however contribute to the composite, and this also reflects inflationary pressures. The index fell to 57.4 from 60.6 and is also the lowest since February.
The other four components of the composite saw slowings in new orders, to a still firm 56.0 from 56.8, and production, to 52.2 from 54.3. However employment rose to 49.7 from 48.6, reaching its highest since January 2025, while inventories moved above neutral for the first time since April 2025.
