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Economic Data (USA)

Tuesday, July 02, 2024

ISM Manufacturing Index for June 2024

Earlier today, the Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for June 2024:


Predicted: 49.0%

  • Actual: 48.5% (-0.2 point month-on-month change)


Previous month (revised): 48.7%


Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the made-in-the-USA sector contracted.


From Today's Report:

"...Economic activity in the manufacturing sector contracted in June for the third consecutive month and the 19th time in the last 20 months, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®..."


The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

  •     'High volume of customer orders.'
     [Chemical Products]

  •     'Customers continue to cut orders with short notice, causing a ripple effect throughout lower-tier suppliers.'
     [Transportation Equipment]

  •     'Consumer demand and inventories are no longer stable at retail and food service establishments.'
     [Food, Beverage + Tobacco Products]

  •     'While orders are still steady, inventory from the previous month is enough to satisfy current- and near-term commitments.'
     [Computer + Electronic Products]

  •     'Customers ordering more to create buffer stocks (in case of) future shortages.'
     [Electrical Equipment, Appliances + Components]

  •     'Order levels in two of our main divisions are indicating weak demand, and now we must work to reduce inventory levels.'
     [Fabricated Metal Products]

  •     'Sales backlog is decreasing. We have furloughed a portion of our workforce as a result.'

  •     'The level of production is lower due to decreased demand for products.'
     [Miscellaneous Manufacturing]

  •     'Elevated financing costs have dampened demand for residential investment. We have reduced inventories of production components.'
     [Wood Products]

  •     'Orders have increased slightly due to seasonal restocking.'
     [Plastics + Rubber Products]



CHART: ISM Manufacturing Index
 June 2024 Update

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