June data highlighted a clear loss of momentum for the manufacturing sector, following the strong growth rates seen in recent months. At 54.6, down from 56.4 in May, the seasonally adjusted IHS Markit Flash U.S. Manufacturing Purchasing Managers’ Index (PMI) signaled the slowest improvement in overall business conditions since November 2017. Manufacturing production growth slipped to a nine-month low, reflecting weaker gains in new business volumes in June. The latest upturn in new work was the softest since September 2017, partly reflecting a slight drop in export sales.
Meanwhile, strong demand for raw materials and stretched supply chain capacity continued to push up average input prices in June. Survey respondents widely commented on rising steel costs and increased prices for related items.