Posted July 1, 2019

Manufacturing expansion slowed in June

Manufacturing expanded in June, as the Institute for Supply Management purchasing index registered 51.7 percent, a decrease of 0.4 percentage point from the May reading of 52.1 percent.

This is the lowest reading since October 2016, when the index registered 51.7 percent.

“This indicates growth in manufacturing for the 34th consecutive month. The PMI continued a period of expansion softening that began in September 2018. Softening this month was primarily due to demand and inputs — new orders, supplier deliveries and inventories. Four of the six big industries expanded (up from three the previous month), but at lower rates,” said Timothy R. Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.