US ISM Manufacturing PMI Actual 49 (Forecast 48.8, Previous 48.5)

US ISM Manufacturing PMI Actual 49 (Forecast 48.8, Previous 48.5)

The latest reading of the U.S. Institute for Supply Management (ISM) Manufacturing PMI for June 2025 came in at 49, missing the forecasted 48.8 and the previous reading of 48.5. This indicates a contraction in manufacturing activity, signaling a slowdown in the sector's expansion.

The ISM Manufacturing PMI, a key indicator of the health of the U.S. manufacturing sector, provides insights into the direction of the economy. A reading above 50 indicates expansion, while a reading below 50 indicates contraction. The latest figure of 49 suggests that the manufacturing sector is contracting, albeit at a slower pace than in previous months.

Several factors may have contributed to this slowdown. Weakened market conditions, rising uncertainty due to tariff announcements and international tensions, and a decline in new orders and output have been cited as reasons for the decline in the PMI [2]. Additionally, the U.S. manufacturing sector has been facing challenges from global trade tensions and the ongoing impact of the COVID-19 pandemic.

The U.S. dollar (USD) is likely to be negatively impacted by the slower manufacturing sector growth, as a stronger manufacturing sector typically boosts the value of the national currency. Conversely, a weaker manufacturing sector may lead to a depreciation of the USD.

Investors and financial professionals should closely monitor future economic indicators to assess the sustainability of the manufacturing sector's slowdown. The ISM Manufacturing PMI is one of several indicators that provide insights into the overall health of the U.S. economy, and it will be important to consider these indicators in conjunction with other economic data.

References:
[1] https://www.fxstreet.com/news/eur-usd-extends-the-rally-to-near-11800-ahead-of-eurozone-inflation-us-ism-pmi-data-202507010456
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_ZRN00BUQF:0-polish-manufacturing-sector-contracts-sharply-in-june-pmi-shows/
[3] https://ng.investing.com/news/economic-indicators/manufacturing-pmi-beats-expectations-signaling-robust-sector-expansion-93CH-1990433
[4] https://seekingalpha.com/news/4463527-chinas-manufacturing-pmi-contracts-for-third-consecutive-month-in-june-to-497-services-growth-at-3-month-peak