On July 1, the Institute for Supply Management (ISM) reported that the manufacturing Purchasing Managers' Index (PMI) for June stood at 53.3. This represents a decrease of 0.7 points from the previous month and fell short of the Dow Jones estimate of 53.9. However, the index remained above the neutral mark of 50, indicating ongoing expansion in manufacturing activity.
The new orders index dropped to 56.0, down 0.8 points from May, but it has maintained growth for six consecutive months. Analysts attribute this sustained demand to investments in artificial intelligence (AI) infrastructure.
Cost pressures have somewhat eased, with the price index for raw materials falling to 73.0, a decrease of 9.1 points from the previous month. This marks the largest monthly decline since July 2022. However, the rise in raw material prices has persisted for 21 months, indicating that inflationary pressures have not been fully alleviated.
Although employment indicators showed some improvement from the previous month, they still reflect a contraction. Export orders also experienced a decline. Among various sectors, 14 industries, including printing, electrical equipment, and textiles, reported growth, while three sectors—paper, furniture, and wood—saw contraction.
* This article has been translated by AI.
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