Manufacturers indicated only a fractional deterioration in operating conditions in June, as the IHS Markit Flash U.S. Manufacturing Purchasing Managers’ Index (PMI) posted only slightly below the 50.0 no-change mark at 49.6, up from 39.8 midway through the second quarter.
The marked softening in the pace of overall decline largely stemmed from notably slower falls in output and new orders. Although still signaling contractions, rates of decrease were their slowest since before the escalation of the pandemic.
Although the rate of job shedding eased in June, backlogs of work continued to be reduced sharply, showing signs of ongoing spare capacity. Where higher employment was noted, this was generally linked to the return to work of furloughed workers and the hiring of extra staff.