“In June, U.S. manufacturing activity remained in expansion territory, growing at a slightly slower pace as compared to the month before,” according to the closely-watched Manufacturing PMI Report from the Institute of Supply Management (ISM). The PMI for June was 53.3, down -0.7 (a reading above 50.0 is consistent with expansion), despite certain headwinds cited by respondents, including the Iranian conflict and tariffs:
- “The conflict with Iran has impacted pricing in every category of raw materials…” (Chemical Products)
- “Continued pressure from the Middle East is resulting in a more conservative approach to capital expenditures…” (Computer & Electronic Products)
- “Input costs remain elevated across key categories, driven largely by Middle East conflict impacts and ongoing tariff uncertainty…” (Food, Beverage & Tobacco Products)
- “Machinery in support of defense and semiconductor manufacturing is very strong…” (Machinery)
- “Core business remains solid in the face of ongoing geopolitical uncertainty…” (Miscellaneous Manufacturing)
