The US manufacturing sector continued to expand in June, with the S&P Global Manufacturing PMI rising to 52.9 from 52.0 in May — the strongest reading since May 2022 and marking a sixth consecutive month of growth. Output rose for the first time since February, supported by sustained growth in new orders from both domestic and international markets. However, tariffs drove input cost inflation to its highest level in nearly three years, prompting manufacturers to raise selling prices at the steepest rate since September 2022. Firms ramped up input purchases and inventories, in part to hedge against trade uncertainty. Employment also rose at the fastest pace since September 2022, driven by higher workloads and increased business confidence.
While the sector benefited from inventory building and improved demand, analysts warned that tariff-related stockpiling may lead to softer growth in the second half of the year. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
