Preliminary 55.7Manufacturing PMI xx.x vs 55.7 preliminaryPrior month 55.1For the full report CLICK HEREDetails from S&P globalUS manufacturing expanded for the 11th consecutive month, but growth slowed to a three-month low.S&P Global Manufacturing PMI: 53.9 in June vs. 55.1 in May (above 50 signals expansion).Demand & ProductionOutput and new orders increased, but at a slower pace than in May.Growth remained historically strong, supported by:New product launches.Customers placing orders ahead of expected price increases.New orders grew at the slowest pace since March.Domestic vs. International DemandDomestic demand remained the primary growth driver.Export orders fell for the 12th straight month.Declines were attributed to:Tariffs.Softer global demand.Middle East geopolitical tensions.EmploymentManufacturing employment fell sharply.Fastest job losses since May 2020.Largest decline outside the pandemic since October 2009.Reduced hiring, combined with stronger order flow, led to a modest increase in backlogs.Inventories & Supply ChainsFinished goods inventories rose only slightly as firms relied on existing stock to fill orders.Supplier delivery times worsened due to:Shipping delays.Port congestion.Companies increased:Purchasing activity at the fastest pace in over four years.Input inventories at the strongest rate since May 2025 to guard against supply disruptions.InflationInput costs remained elevated due to:Tariffs.Higher raw material prices.Cost inflation eased from May's recent peak but remained historically high.Selling price inflation also slowed, falling to a three-month low.Business ConfidenceBusiness optimism declined for a second straight month.Confidence fell to its lowest level since October 2025 (an eight-month low).Firms were encouraged by:Expectations for easing inflation.Potential easing in geopolitical tensions.Confidence was restrained by concerns over the health of the U.S. economy.Key Takeaways✅ Manufacturing remains in expansion mode.✅ Domestic demand continues to support activity.⚠️ Growth momentum is slowing.⚠️ Employment remains a significant weakness.⚠️ Tariffs and supply chain issues continue to pressure costs.⚠️ Exports remain soft and business confidence is deteriorating.Chris Williamson, Chief Business Economist at S&PGlobal Market Intelligence: “US manufacturers reported a further markedimprovement in growth of output and order books inJune, according to S&P Global’s PMI data, extendingthe growth spurt that has been reported since theoutbreak of the war in the Middle East. Employment wasnevertheless cut sharply as firms often sought to offsetthe rising cost of energy and raw materials.“Supply chain delays and upward price pressurescontinued to be widely reported, albeit moderatingthanks to recent news of an improving situation in theMiddle East. However, despite the recent drop in energyprices and brighter outlook for shipping, businessconfidence has fallen sharply, in part reflecting concernsthat an end to war-related inventory building could startto act as a drag on sales.”The Manufacturing data was 49-month high for manufacturing last month. The index has moved lower of that level in the month of JuneThe S&P Global Manufacturing Purchasing Managers' Index (PMI) is a leading economic indicator measuring the health of the manufacturing sector. A score above 50 signals expansion, while a reading below 50 indicates contraction. [1, 2, 3] This article was written by Greg Michalowski at investinglive.com.