U.S. manufacturing activity surpasses expectations, but factory employment falls to a six-year low

Golden Ten Data, June 23 – Driven by companies placing orders in advance to prevent shortages and price increases, U.S. manufacturing activity expanded again in June. However, factory employment fell to a six-year low, mainly due to increased operating costs caused by the Middle East conflict. The preliminary S&P Global Manufacturing PMI for the U.S. in June rose to 55.7 from 55.1 in May, reaching its highest level since May 2022, while economists surveyed by Reuters had previously expected the index to drop to 54.8. The rise in Manufacturing PMI, together with the preliminary Services PMI increasing from 50.7 in May to 51.3, pushed the Composite PMI Output Index up from last month’s 51.5 to 52.2. The rebound in the Services PMI is partly attributed to the World Cup jointly hosted by the U.S., Canada, and Mexico.