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ISM US Manufacturing Index Indicates Contraction in June

BY MT Newswires | ECONOMIC | 07/01/25 10:08 AM EDT

10:08 AM EDT, 07/01/2025 (MT Newswires) -- The Institute for Supply Management's US manufacturing index rose to 49.0 in June from 48.5 in May, compared with expectations for a smaller increase to a 48.8 reading in a survey compiled by Bloomberg as of 7:35 am ET.

There were gains in the readings for production and prices, but declines in new orders, employment and order backlogs.

The index indicates contraction, which is in line with all the regional services data already released, but in contrast with the S&P Global index that suggested expansion.

The monthly national manufacturing reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.

An increase in the index further above 50 is considered a sign of a strong US manufacturing sector, generally a positive for manufacturing industry stocks. However, if that strength comes with rising input prices due to shortages, that could be a negative for stocks as well as bonds.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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