01.07.2022 20:42
US' manufacturing sector is held back by supply chain constraints, expert says.
The ISM manufacturing purchasing managers' index (PMI) in the US declined to its lowest level in 24 months in June, according to a report by the Institute for Supply Management (ISM) on Friday.
The index, based on replies of purchasing and supply executives in over 400 industrial firms, fell to 53% in June, down 3.1 percentage points from 56.1% in May.
The market expectation for the index was to come in at 54.9% in June.
While a reading above 50 indicates growth, below that level shows contraction.
The US' manufacturing sector is held back by supply chain constraints, ISM Manufacturing Business Survey Committee Chair Timothy Fiore said in the statement.
The production index rose to 54.9% in June, an increase of 0.7 percentage points from the May reading of 54.2%, according to ISM.
The new orders index, on the other hand, fell to 49.2% last month, down 5.9 percentage points from the previous month's reading of 55.1%.
The employment index contracted for a second consecutive month by falling to 47.3%, which is 2.3 percentage points lower than the 49.6% recorded in May. -