FX.co ★ US ISM Manufacturing PMI Slightly Above Forecasts

The ISM Manufacturing PMI rose to 49 in June 2025, up from 48.5 in May, surpassing the anticipated 48.8. This metric reflects a contraction in the manufacturing sector for the fourth consecutive month, although the pace of contraction has eased. This improvement is attributed to a recovery in production, which increased to 50.3 from 45.4, alongside betterment in inventory levels, rising to 49.2 from 46.7. Conversely, there was a quicker decline in new orders, dropping to 46.4 from 47.6, as well as in employment, which fell to 45 from 46.8, and the backlog of orders, which decreased to 44.3 from 47.1. Additionally, inflationary pressures saw a slight increase, with inflation growing to 69.7 from 69.4, while the growth in tariffs-induced prices gained momentum. Furthermore, the Supplier Deliveries Index decreased to 54.2 from 56.1, suggesting slower delivery times but improved overall performance, signifying that the port-related clearance delays have mostly been resolved.