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US manufacturing activity expanded in June as factories reported stronger output and higher order volumes, while hiring conditions weakened across the sector. The latest S&P Global flash PMI survey showed that production continued to improve, but its employment measure fell below the growth threshold and reached its lowest reading since May 2020. The data presented a mixed view of the US industrial economy. Manufacturers increased production to meet stronger demand and respond to earlier purchasing activity, but many companies also reduced headcounts as they managed costs and remained cautious about the outlook. According to S&P Global, the US Manufacturing PMI rose to 55.7 in June from 55.1 in May. That marked the highest reading since May 2022. A reading above 50 signals growth, while a reading below 50 signals contraction. The survey’s Manufacturing Output Index also increased, rising to 57.7 from 56.6 in May. S&P Global said the reading marked a 59-month high and reflected the fastest production growth since July 2021. Factory employment moved in the opposite direction. Reuters reported that S&P Global’s manufacturing employment index fell to 47.0 in June from 51.6 in May. That was the lowest reading since May 2020 and indicated contraction in manufacturing headcounts.
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