(NAM), the S&P Global Flash U.S. Manufacturing PMI increased for the 11th straight month, rising from 55.1 in May to 55.7 in June, its highest reading in 49 months.
Factory output expanded at the fastest pace since July 2021, while growth in new orders reached its strongest level since April 2022. Manufacturing employment, however, recorded its steepest decline since May 2020 as concerns over rising input costs continued to weigh on hiring.
Manufacturers also continued to build inventories in June, with stocks of factory inputs increasing at the fastest rate since May 2025 and the second-fastest pace ever recorded by the survey. Supplier delivery times lengthened to their greatest extent since August 2022, as respondents pointed to war-related shipping disruptions and inventory stockpiling as factors intensifying supply constraints.
Although manufacturers’ input cost inflation eased from May’s recent peak, both input and selling prices remained elevated. Price increases across manufacturing and the service sector continued at the same pace as the previous month, marking the highest rate since July 2025.
Overall business activity also strengthened in June, with the index climbing from 51.5 to 52.2. Further, the growth rate in the services sector improved, rising to a four-month high. Employment declined for the second consecutive month, reflecting ongoing concerns over rising costs and a significant reduction in manufacturing payrolls.
Looking ahead, manufacturers’ confidence in future business conditions improved in June, reaching its highest level since February. Optimism in the service sector also increased, supported in part by expectations that supply chain disruptions and pricing pressures may begin to ease. Even so, overall sentiment remained below long-term averages as businesses continued to navigate the effects of war-related disruptions and tariff policies.
