US manufacturing PMI barely rises in June as Trump tariffs bite

According to the Institute for Supply Management (ISM) report, the US manufacturing PMI rose to 49.0 last month, up from May's 48.5 reading. Reuters-polled analysts had forecast the PMI little changed at 48.8.

This suggests the American administration's ambiguous policies continue to hinder businesses' ability to plan ahead.

From January to March, domestic demand grew at its slowest pace in over two years. US President Donald Trump’s policies prompted American businesses and households to accelerate imports and goods purchases to avoid tariff-driven price hikes, injecting uncertainty into the country’s economic outlook, Reuters reports.

Last month’s PMI increase likely reflected longer supplier delivery times, a factor typically associated with strong demand, Reuters analysts note.

The ISM New Orders Index for manufacturing declined from 47.6 in May to 46.4 in June, marking five consecutive months of contraction.