S&P global PMI manufacturing index final 46.3
- Flash estimate 46.3
- Manufacturing PMI final 46.3 unchanged from the flash estimate
- Prior month 48.4
From S&P Global:
In June, US manufacturing firms recorded a consecutive monthly decline in the health of the sector, according to the S&P Global US Manufacturing PMI. The rate of contraction intensified, driven by a fall in output and a steeper downturn in new orders. Although employment grew as manufacturers sought to fill vacancies, future output expectations weakened due to a dearth of new orders.
Firms had to run down stocks significantly due to a lack of new orders. There was also a sharp fall in cost burdens at the fastest pace in over three years, mainly due to weak demand conditions. Prices of output charges remained unchanged as firms tried to attract new sales.
The seasonally adjusted PMI posted 46.3 in June, indicating the steepest decline in operating conditions in 2023 so far. New orders contracted markedly, attributed to suppressed demand due to inflationary pressure and higher interest rates. Export orders also fell for the thirteenth consecutive month.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted that the health of the US manufacturing sector worsened in June, fueling concerns about a potential recession in the second half of the year. Demand for goods slumped at a rate comparable to the steep declines seen during the 2009 global financial crisis. Manufacturers, suppliers, and customers all sought to reduce inventory in the face of weakening demand. Inflationary pressures in the goods-producing sector nearly collapsed, with input costs falling and factory gate prices barely rising.