Economic activity in U.S. manufacturing expanded during the month of June, marking the 25th consecutive month of growth according to the most recent Manufacturing ISM® Report on Business®. The manufacturing PMI was 53%, 3.1 percentage points lower than May, indicating continued growth, but at a slower rate.
The food, beverage, and tobacco industry reported moderate-to-strong growth. Supply chain and pricing continue to be the biggest concerns.
The prices index was down 3.7 percentage points to 78.5%, indicating some easing on that front. Some commodities continue to be in short supply, including temporary labor, which has been in this category for 14 months in a row, and packaging products, which has now been on this list for two straight months. The food, beverage, and tobacco industry also reported a decline in new orders, slower supplier deliveries, and employment growth.
According to one industry respondent, “Business is slower than expected in volume, but revenue is on pace with our budget. Ocean freight costs are finally beginning to fall a bit. We are already receiving large orders for the fall, which is encouraging.”
