By Joshua Kirby
Activity among U.S. manufacturers weakened again last month as demand limps.
The Institute for Supply Management said Monday that its purchasing managers' index of manufacturing activity slipped to 48.5 in June from 48.7 in May, thwarting economists' expectations for a slight increase. A reading of 50 represents the threshold between expansion and growth.
The survey's measure of new orders continued to point to contraction, highlighting weak demand for manufactured goods, though the gauge rose compared with a month earlier.
The overall index had returned to growth in March, ending a 16-month streak of weakening activity, but that rebound has proven short-lived.
"Demand was weak again [and] output declined," said Timothy Fiore, chairman of the ISM manufacturing business survey committee. He pointed to deterioration in backlogs and export orders as further proof of limping demand in the sector.
"Companies demonstrate an unwillingness to invest in capital and inventory due to current monetary policy and other conditions," Fiore said. "Production execution was down compared to the previous month, likely causing revenue declines, putting pressure on profitability."
The index of prices meanwhile continued to rise, marking a sixth straight month of increases, but at a slower rate, hinting at an easing of the inflationary pressures that have weighed on business across the U.S. in recent years.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
07-01-24 1031ET
