Report: Manufacturing Activity Slowed Significantly in June

The S&P Global Flash U.S. Manufacturing PMI declined from 57 in May to 52.4 in June, the lowest reading since July 2020. According to Chad Moutray, chief economist for the National Association of Manufacturers, both new orders and output contracted in June for the first time in two years.

OMA Connections Partner RSM says its U.S. Manufacturing Outlook Index also declined, as the firm estimates there’s a 45% probability of a recession over the next 12 months.

Meanwhile, despite inflation concerns, two-thirds of small businesses expect to increase their revenue over the next year and 43% percent plan to hire more staff, according to a U.S. Chamber survey. Another survey finds 70% of U.S.-based manufacturers are planning reshoring or nearshoring projects due to global supply challenges. 6/29/2022