In June, the US manufacturing sector experienced its eighth consecutive month of contraction. This was due to declining demand, production, and employment, which resulted from the Federal Reserve's aggressive interest rate increases to control inflation.
The Institute for Supply Management (ISM) factory purchasing managers' index (PMI) dropped to 46, indicating contraction. The new orders index improved slightly to 45.6, suggesting a slower pace of contraction.
The Fed paused its rate increases after a series of hikes, while the labor market remained strong and the overall economy grew at a 2% annual rate in the first quarter.
The ISM production index and prices index both declined, indicating contraction. The new exports index fell, while the new imports index rose slightly.
The employment index slipped into contraction, and the supplier deliveries index, which reflects slower deliveries during an improving economy, increased slightly.
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