FX.co ★ US Manufacturing Sector Growth Cools in June

The US ISM Manufacturing PMI eased to 53.3 in June 2026, down from 54.0 in May and below market expectations of 54. The latest reading points to a moderation in manufacturing activity, with both output (52.2 vs. 54.3 in May) and new orders (56.0 vs. 56.8) expanding at a slower pace. Employment remained in contraction, though the rate of job losses moderated, as the employment index improved to 49.7 from 48.6. At the same time, the prices index fell sharply to 73.0 from 82.1, signaling some relief in cost pressures, even as price growth stayed elevated. Survey respondents continued to highlight concerns about moderating but still high inflation, partly attributed to the conflict in the Middle East. They also cited the risk of higher interest rates and persistent policy uncertainty—particularly around tariffs and global trade—as key headwinds for the manufacturing sector.