Market Update | July 2, 2025
Economic activity in the manufacturing sector contracted in June, albeit at its slowest rate since February. The June Manufacturing PMI came in at 49.0, up from 48.5 in both May and June of last year. Despite the improvement, the index has remained in contraction for four consecutive months. The decent (4.9) jump in the production index, which pushed it into expansion at 50.3, was not enough to overcome the slides seen in new orders (-1.2), employment (-1.8), and backlog of orders (-2.8). Inventories continued to contract in June but at a much slower rate and are now just a tab below neutral.