U.S. manufacturing activity contracts in June

U.S. manufacturing activity contracted in June but at a slower pace than expected. Manufacturing businesses are still uncertain about the potential impact of higher tariffs. The ISM manufacturing purchasing managers’ index for the month came in at 49.0, rising slightly from 48.5 in May and above expectations of 48.8.

New manufacturing orders declined for the fifth month in a row. The ISM index of new manufacturing orders posted a reading of 46.4 in June. In May, the number had stood at 47.6. However, gauges of inventories and production improved, which accounted for much of the 0.5 percentage point gain in the overall figure.

 New job openings in USA increase in May but actual hiring decline

According to Bureau of Labor Statistics data, new job opening in US by the end of May stood at 7.769 million. This was an increase of 374000 over than in April. This makes it 1.07 jobs available for every unemployed person currently in US. In April this number stood at 1.03. This increase in new job openings was driven by accommodation & food services sector. 314,000 job vacancies were there in this sector, by the end of May.

But actual hiring came down in May by 112,000 to 5.503 million. The decline in actual hiring indicates to prevailing uncertainty amidst companies and businesses regarding the actual course that higher Trump tariffs will take.

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Source: Bureau of Labor Statistics