U.S. June Manufacturing PMI Flash at 52.0, Exceeding Market Expectations

The U.S. Manufacturing Purchasing Managers' Index (PMI) for June slightly exceeded forecasts.

On the 23rd (local time), S&P Global announced that the Manufacturing Purchasing Managers' Index for June was 52.0, slightly above Wall Street's forecast of 51.1.

S&P Global's report stated, "This month's Manufacturing PMI shows the strongest expansion in 15 months," adding, "Factory output rose for the first time in four months, and the growth rate for new orders remained solid." It continued, "One of the main drivers behind the rise in PMI is employment," noting that manufacturing employment increased at the fastest pace in 12 months.

Chris Williamson, Chief Economist at S&P Global, said, "The June PMI flash indicates growth in the U.S. economy, but inflationary pressures have surged, making the outlook uncertain." He explained, "Domestic demand has driven job growth in manufacturing, but this effect could fade going forward." He also added, "The pace of cost increases due to tariffs is at its highest in three years."

The Purchasing Managers' Index (PMI) uses 50 as the baseline to gauge whether the industry is expanding or contracting. A PMI above 50 indicates expansion, while a reading below 50 signals contraction.

The PMI flash is released before the end-of-month final PMI and is used as an early indicator for assessing economic conditions.