U.S. manufacturing activity grew more slowly in June than in May, but stayed in expansion territory for a sixth consecutive month.
The Institute for Supply Management (ISM) said the June manufacturing purchasing managers' index (PMI) came in at 53.3, down 0.7 point from May. The figure fell short of the 53.9 expected by analysts polled by Dow Jones. It remained above 50, the threshold separating expansion from contraction, marking a sixth straight month of growth since January. Massive investment in artificial intelligence (AI) infrastructure is seen as having supported manufacturing activity.
The prices index, which reflects manufacturers' cost burdens, registered 73, a sharp drop of 9.1 points from May. That was the largest monthly decline since July 2022. The fall is attributed to lower international oil prices following a ceasefire agreement between the United States and Iran. By sector, 14 industries including printing, electrical equipment and textiles posted growth, while three industries such as paper, furniture and wood contracted.
