US Manufacturing Activity Modestly Rises Amid Continued Contraction

U.S. manufacturing activity showed modest improvement in June but remained largely in contraction territory according to multiple reports. The Institute for Supply Management (ISM) manufacturing index rose slightly to 49.0, indicating continued contraction but with a rebound in production, while new orders and employment declined further. Similarly, the S&P Global Manufacturing PMI increased to 52.9, marking the strongest growth in over three years, driven partly by inventory building amid trade and price uncertainty, though input costs and output charges rose sharply. The Dallas Fed's Texas Manufacturing Outlook Survey revealed mostly stagnant or worsening conditions, with the general business activity index staying negative and price pressures elevated. Despite signs of increased hiring in Texas, hours worked decreased, and wage growth remained subdued. Overall, these mixed signals highlight ongoing challenges in U.S. manufacturing, including inflationary pressures and cautious demand.