TEMPE, Ariz. — Economic activity in the manufacturing sector contracted in June for the eighth consecutive month following a 28-month period of growth, according to last week’s Manufacturing ISM Report On Business.

“The June Manufacturing PMI registered 46%, 0.9 percentage point lower than the 46.9% recorded in May,” said Timothy R. Fiore, chair of the Institute for Supply Management manufacturing business survey committee, adding, “The New Orders Index remained in contraction territory at 45.6%, 3 percentage points higher than the 42.6% recorded in May.”

He also noted other indexes measured in the report, showing a decline or contraction compared with May figures:

• The Production Index – 46.7%, a 4.4-percentage point decrease.
• The Prices Index – 41.8%, down 2.4 percentage points.
• The Backlog of Orders Index – 38.7%, up 1.2 percentage points.
• The Employment Index – 48.1%, down 3.3 percentage points.
• The Supplier Deliveries Index – 45.7%, up 2.2 percentage points.
• The Inventories Index – 44%, down 1.8 percentage points.
• The New Export Orders Index – 47.3%, down 2.7 percentage points lower.
• The Imports Index – 49.3%, up 2 percentage points.

“The U.S. manufacturing sector shrank again, with the Manufacturing PMI losing ground compared to the previous month, indicating a faster rate of contraction,” continued Fiore. The June composite index reading reflects companies continuing to manage outputs down as softness continues and optimism about the second half of 2023 weakens.”

Of the six biggest manufacturing industries, only Transportation Equipment registered growth in June. Eleven industries reported contraction in June: Plastics & Rubber Products; Wood Products; Textile Mills; Chemical Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Paper Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; and Machinery.

The full text version of the Manufacturing ISM Report On Business is posted on ISM’s website.

Source: https://www.furnituretoday.com/