US ISM Manufacturing PMI fell from 46.9 to 46.0 in June, below expectation of 47.2. Looking at some details, production fell from 51.1 to 46.7. Employment fell from 51.4 to 48.1. Prices fell from 44.2 to -2.4. New orders rose from 42.6 to 45.6, but stay below 50.
The headline reading indicates that the manufacturing sector is in the eighth month of contraction. None of the 10 subindexes were above 50 percent for the period. “The past relationship between the Manufacturing PMI and the overall economy indicates that the June reading (46 percent) corresponds to a change of minus-1 percent in real gross domestic product (GDP) on an annualized basis,” ISM said.
