U.S. Manufacturing PMI 53.3% in June; 8th month of production growth, headcount stabilizing

The U.S. manufacturing sector expanded in June with the ISM Manufacturing Purchasing Managers' Index at 53.3%, down 0.7 points from May but marking the sixth consecutive month of expansion. The New Orders Index stood at 56%, and the Production Index logged its eighth consecutive month of growth at 52.2%, indicating sustained demand despite macroeconomic moderation.

Labor market conditions stabilized: the Employment Index rose to 49.7% in June (33rd consecutive month of contraction but nearing breakeven), with 64% of surveyed manufacturers reporting active hiring versus 36% managing headcount. Raw material cost inflation remained elevated at 73% on the Prices Index, down from May but representing the 21st consecutive month of increases, driven by tariffs, steel and aluminum prices, and Middle East conflict impacts.

For architects: Manufacturing resilience matters to AI capex planning—14 of 18 tracked industries reported June growth, but forward visibility is weakening. 66% of panelist comments were negative, and 50% cited pricing volatility. Supplier delivery times continued to lengthen (Index 57.4%), signaling potential supply-chain friction for chipmakers and data center operators planning H2 2026 buildouts.