The ISM (Institute for Supply Management) Manufacturing PMI registered 53.3% in June, marking the sixth consecutive month of growth. The PMI decreased 0.7 points from last month’s 54%, indicating growth at a slower rate compared to May.

“Of the five subindexes that make up the PMI, the new orders and production indexes grew slower as compared to the previous month, the supplier deliveries index slowed at a slower rate and the employment and inventories indexes improved, with the latter entering expansion territory,” says Susan Spence, chair of the ISM’s manufacturing business survey committee. A reading below 50% represents contraction.

The new orders and production indexes fell 0.8 points to 56% and 2.1 points to 52.2%, respectively. The employment index gained 1.1 points for a June reading of 49.7%.

“Among panelists, 36% indicated that managing head counts remains the norm at their companies, while 64% are hiring — a near reversal of those numbers from the start of the year (66% of companies were managing staff levels in the January report),” says Spence.

14 manufacturing industries reported growth last month:

• Printing & related support activities
• Electrical equipment, appliances & components
• Textile mills
• Primary metals
• Apparel, leather & allied products
• Fabricated metal products
• Computer & electronic products
• Machinery
• Plastics & rubber products
• Transportation equipment
• Nonmetallic mineral products
• Chemical products
• Miscellaneous manufacturing
• Food, beverage & tobacco products

“All but one (petroleum & coal products) of the six largest manufacturing industries expanded in June, in the following order: computer & electronic products; machinery; transportation equipment; chemical products; and food, beverage & tobacco products,” says Spence.

The survey comments continue to skew negative, with the conflict in Iran, the Strait of Hormuz closure and tariffs weighing heavily on manufacturers.

“The new Section 232 tariffs continue to destroy our profitability and demand as we have to raise prices to deal with this gigantic tax,” writes a respondent in the transportation equipment sector.

Another respondent in the computer & electronic products industry writes, “General purchasing operations are being shaped by (1) moderating but still elevated inflation, (2) higher interest rates and (3) continued policy uncertainty, particularly around tariffs and global trade. While overall economic growth remains resilient, it is slowing as consumer spending weakens under pressure from higher costs for energy and essential goods.”