S&P Global US Manufacturing PMI Hits Two-Year High in June 2026

PMI Rises as Production and New Orders Strengthen

The S&P Global US Manufacturing PMI registered 55.7 in June 2026, up from 55.1 in May, surpassing market forecasts of 54.8. This marks the strongest reading since May 2022 and extends the period of continuous improvement in manufacturing business conditions that has been underway since last August. Growth has been steadily accelerating from a recent low point reached in February.

A key contributor to the headline increase was production growth, which accelerated at the fastest pace since July 2021. This rise in output was supported by the largest surge in new orders since April 2022, indicating robust demand for manufactured goods. The strengthening order pipeline has underpinned overall factory activity and reinforced the upward trend in the PMI.

Inventory Build-Up and Supplier Delays Contrast with Employment Decline

Input inventories recorded their biggest increase since May 2025, representing the second steepest rise in the history of the survey. This suggests that manufacturers have been actively rebuilding stocks, potentially in response to stronger order flows and expectations of continued activity. The PMI was also supported by the most significant lengthening of supplier delivery times since August 2022, reflecting increased pressure on supply chains.

However, the overall index gains were partly limited by a marked deterioration in manufacturing employment. Workforce levels posted their sharpest decline since May 2020, offsetting some of the positive contributions from production, new orders, inventories, and supplier delivery times. Despite this drag from employment, the June reading still signaled a solid expansion in US manufacturing conditions, capping several months of progressively stronger growth since February.

FAQ

What was the S&P Global US Manufacturing PMI reading for June 2026?
The S&P Global US Manufacturing PMI rose to 55.7 in June 2026, up from 55.1 in May.

How did the June PMI compare with market forecasts?
The June PMI surpassed market forecasts, which had anticipated a reading of 54.8.

What were the main drivers of the PMI increase?
The increase was driven by faster production growth, the largest rise in new orders since April 2022, and a significant build-up in input inventories, alongside longer supplier delivery times.

How did manufacturing employment perform in June 2026?
Manufacturing employment recorded a substantial decline, marking the sharpest drop in workforce levels since May 2020, which partially constrained the overall PMI gains.