Manufacturing Surveys Soared In June... But So Did Prices

Despite 'hard' data plummeting, catching down to 'soft' data's early demise, expectations were for a modest rise in Manufacturing survey data this morning.

• S&P Global Manufacturing PMI rose from 52.0 to 52.9 in June (better than 52.0 exp) - the strongest in over 3 years
• ISM Manufacturing rosefrom 48.5 to 49.0 (better than 48.8 exp) - highest since Feb 2025

For once, both surveys agreed with each other...

Source: Bloomberg

However, tariffs remained a prevalent theme, notably affecting purchasing decisions and prices.

Latest data showed manufacturers raising their input buying activity to the greatest extent since April 2022, at times reflective of efforts to build up inventories given ongoing trade and price uncertainty.

Nonetheless,input costs still rose sharply,with inflation hitting its highest level for nearly three years.

A similar trend was seen for output charges, which rose to the greatest degree since September 2022.

In the ISM survey, both employment and new orders remain below 50 (in contraction) and weakened in June.

Source: Bloomberg

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence: June saw a welcome return to growth for US manufacturing production after three months of decline...

However, inflation looms:

Is 'soft' data about to recover?