NAM: Manufacturing Slows Significantly In June
The S&P Global Flash U.S. Manufacturing PMI declined from 57.0 in May to 52.4 in June, the lowest reading since July 2020, according to Chad Moutray, Ph.D. and Chief Economist at the National Association of Manufacturers (NAM). Both new orders and output contracted in June for the first time in roughly two years, with global challenges, supply chain bottlenecks, workforce shortages and infla- tionary pressures weighing heavily on activity. Yet, there remains cautious optimism about production growth mov- ing forward despite weakening for the third straight month. At the same time, the S&P Global Flash Eurozone Man- ufacturing PMI decreased from 54.6 in May to 52.0 in June, the weakest reading since August 2020. The Russian in- vasion of Ukraine continued to impact activity negatively, with output contracting for the first time since June 2020 and new orders and exports deteriorating further. Manufacturing activity in the Kansas City Federal Re- serve Bank’s district expanded at the slowest pace since December 2020, with the composite index declining from 23 in May to 12 in June. Hiring pulled back in June from May’s record pace but remained solid. The index for prices paid decelerated in June but remained very elevated. In their comments, manufacturers cited supply chain disrup- tions and soaring costs as significant challenges.
20
www.boardconvertingnews.com
July 4, 2022
Made with FlippingBook flipbook maker