US ISM manufacturing index at 3-year low

The Institute for Supply Management (ISM) manufacturing index in the US fell below expectations in June, falling to 46. Thus, the index fell to its lowest level since May 2020. The ISM announced the manufacturing industry index for June. Accordingly, the ISM manufacturing index fell by 0.9 points compared to the previous month in June, falling to 46. The data, which fell below market expectations, was expected to be 47.2 in this period. The index, which recorded its lowest level since May 2020 and indicated that the contraction in the manufacturing industry continued, had been 46.9 in May. On the other hand, the index for new orders increased by 3 points in June, rising to 45.6. The employment index decreased by 3.3 points in the same period, falling to 48.1. In June, 11 sectors, primarily plastic and rubber products, wood products and textile factories, reported contractions in activity. At the same time, recent government data showed that business demand for equipment is still healthy and could provide some support for manufacturers if sustained. PMI readings above 50 indicate expansion in the sector, while readings below 50 indicate contraction.