Growth in U.S. manufacturing activity slowed significantly in June, the ISM trade federation’s index released Friday showed, to the slowest pace in two years. “US manufacturing continues to be fueled, albeit less so in June, by demand while being held back by supply chain constraints.” says Timothy Fiore, head of this ISM survey.
decreased by 3.1 points compared to May
The index rose to 53% last month, down 3.1 points from May, partly due to a sharp drop in new orders of 5.9 points. Activity increases when the indicator is above 50%. It shrinks when it is below this limit. Therefore, the ISM new orders index stands at 49.2%, thus indicating that they are now declining.
“There are signs of a slowdown in the pace of new orders (…), but the root cause is hard to pin downsays Timothy Fiore, who refers to pell-mell as a reduction in demand, an adjustment to excess production time, or a combination of the two. Although the total is at a two-year low, June marked its 25th consecutive month of growth. The components of the index have had contradictory developments. In addition to the new orders index, the price index decreased by 3.2 points to 78.5%, as well as employment, which decreased by 2.3 points to 47.3%. The production index slightly increased by 0.7 points and made 54.9%.
Source: Le Figaro
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