What does the June 2024 US Manufacturing PMI reading of 53.9 indicate about the sector's health, and how does it compare to May?

The June 2024 US Manufacturing PMI reading of 53.9 indicates continued expansion in the manufacturing sector, as any figure above 50 signals improvement from the previous month; however, it reflects a slowdown in growth momentum compared to May’s reading of 55.1. According to S&P Global’s data, output and new orders rose again in June—extending a growth spurt that began after the outbreak of the war in the Middle East—but the pace of improvement moderated. Notably, employment declined sharply, with job cuts occurring at the fastest rate since May 2020 and, excluding pandemic-related disruptions, the steepest since October 2009.

Why did manufacturers report rising input costs in June despite easing selling price inflation, and what strategic behavior did some firms adopt in response?

Manufacturers reported steep increases in input costs in June—though less severe than in May—driven primarily by higher energy and raw materials prices, which prompted many firms to cut jobs to offset these pressures. At the same time, selling price inflation eased to a three-month low, suggesting reduced pass-through pressure to consumers. In response to anticipated cost hikes, some companies pursued proactive supply chain strategies, including launching new products and securing pre-orders specifically to hedge against future price increases—a behavior explicitly cited by survey respondents in the PMI report.

June US Manufacturing PMI Shows New Orders Up, Costs Still Rising

Jul 1, 2026

S&P Global US Manufacturing PMI rose to 53.9 in June, driven by higher output and new orders. However, employment fell sharply as firms faced rising energy and raw material costs.

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June US Manufacturing PMI Shows New Orders Up, Costs Still Rising

June US Manufacturing PMI Shows New Orders Up, Costs Still Rising

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