The Institute for Supply Management’s (ISM) PMI, a gauge of U.S. manufacturing activity, fell -3.1 points to 53.0 in June signaling slower growth (a reading above 50.0 is consistent with expansion). The reading was the lowest in two years and failed to reach consensus market expectations of 54.9. Significantly, New Orders contracted, falling -5.9 points to 49.2 while inflationary pressures seemed to ease as Prices fell -3.7 points to 78.5. According to ISM, “sentiment remained optimistic regarding demand, with three positive growth comments for every cautious comment. Panelists continue to note supply chain and pricing issues as their biggest concerns.” See the full report here.
