US Manufacturing PMI Slips to 3-Month Low Despite Continued Expansion

Key Facts

1The S&P Global US Manufacturing PMI fell to 53.9 in June, a three-month low and below the forecast of 55.7.

2Despite the slowdown, the index signals expansion for the eleventh consecutive month.

Amid mounting signs of a US economic slowdown, the S&P Global US Manufacturing PMI declined to 53.9 in June — a three-month low and below the 55.7 forecast. Still, the index remains above the 50 expansion threshold, marking the 11th consecutive month of growth, according to Advisor Perspectives reports.

The reading comes amid mixed US economic data. Durable goods orders fell 4.5% month-over-month in the June 25 release, matching expectations, per pre-fetched data. Meanwhile, first-quarter GDP grew at an annualized 2.1% (final June 25 reading), beating the 1.6% forecast. The PCE price index rose to 4.1% year-over-year in May, underscoring persistent inflationary pressures.

Traders now await speeches by Fed officials Michelle Bowman and Austan Goolsbee on June 25 for rate-path clues, along with upcoming employment data. With inflation still above target, the Fed remains cautious, potentially capping manufacturing momentum in the months ahead.