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US Manufacturing Growth Slows in June, PMI Lowest Since 2020: ISM

Jul 22, 2022
US manufacturing activity continued growing in June, but its rate of growth slowed, according to the Institute for Supply Management’s Manufacturing PMI. It fell to a reading of 53.0% in June from 56.1% in May. It’s the lowest Manufacturing PMI reading since June 2020.

“The US manufacturing sector continues to be powered — though less so in June — by demand while held back by supply chain constraints,” said Timothy Fiore, chair of the ISM’s Manufacturing Business Survey Committee.

Manufacturing PMI readings above 50% indicate the manufacturing economy is expanding.

Fiore also said manufacturers made progress on addressing moderate-term labor shortages. And firms taking part in the report’s survey noted lower rates of quits compared to May.

Still, the employment index fell to a reading of 47.3% in June from 49.6% in May, both readings indicate contraction.

“The [employment index] contracted for a second straight month after an eight-month period of expansion,” Fiore said. “This is the lowest reading since August 2020, when the index registered 47.1%.”

However, he noted 14% of survey respondents noted greater hiring ease in June compared to 7% in May. In addition, a majority of panelists say their companies are continuing to hire. 

Data for the Manufacturing PMI report is taken from a survey of manufacturing supply executives.

Source: Staffing Industry Analysts

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