Macro Economy•1 July 2026•
1 min read

US Manufacturing PMI Edges Down to 53.3 in June

Key Facts

1The Institute for Supply Management's manufacturing PMI stood at 53.3 in June, down 0.7 percentage point from May.

Amid lingering uncertainty over the economic growth trajectory, US factory activity moderated slightly in June. The Institute for Supply Management's manufacturing PMI came in at 53.3, down from 54.0 in May, according to a Wall Street Journal report. The reading remains above the 50 threshold, indicating continued expansion at a slower pace.

The PMI reading comes amid mixed signals from other data: durable goods orders fell 4.5% in May, while GDP grew 2.1% in Q1 and core PCE inflation held at 0.3% MoM in May, per market data. This mix suggests an economy facing sectoral divergence, with manufacturing slowing while the services sector remains robust.

Investors are watching upcoming monthly employment data and the FOMC meeting later in July for clues on the rate path. Further softness in manufacturing could strengthen expectations for a rate cut. Meanwhile, the PMI staying above 50 gives the Fed room to keep rates higher for longer, but the deceleration trend could shift those calculations.