In a concerning development for the U.S. manufacturing sector, the Institute for Supply Management (ISM) reported a further decline in its Manufacturing Employment Index, marking another month of contraction. According to the latest data updated on July 1, 2025, the employment index registered a dip from 46.8 in May to 45.0 in June.
The ISM Manufacturing Employment Index is a critical barometer of job growth within the sector, and figures below the neutral 50 mark indicate contraction. This drop to 45.0 signifies an accelerated decline in manufacturing employment since the previous month, where the index was already below average at 46.8.
The continued downward trend suggests heightened pressures in the industrial labor market, sparking concerns among economists and policymakers regarding the potential implications for broader economic health and stability. As the manufacturing sector grapples with these challenges, industry leaders and government officials alike will be closely monitoring the coming months for any signs of recovery or continued decline.
