Despite tariff fears, PMI jumps 1.5 percentage points

Index hits 60.2% while manufacturers worry about trade war and supply chain issues.

Bob Vavra, CFE Media
Despite tariff fears, PMI jumps 1.5 percentage points

Courtesy: Bob Vavra, CFE Media

Even with the evolving global tariff crisis on the horizon, manufacturing rocketed past the 20% growth threshold in June, as the Institute for Supply Management's (ISM) monthly purchasing manufacturers' index (PMI) leaped 1.5 percentage points to 60.2% in June. It was the 22nd straight month of growth in the manufacturing sector, defined by a PMI above 50.0%. The index also hit its highest level since a 60.8% reading in February.

Manufacturers continued to reap the benefits of a strong economy despite the tariff escalation, said Timothy Fiore, chairman of the ISM Manufacturing Business Survey Committee.

"Consumption, described as production and employment, continues to expand in spite of labor, skill and material shortages," Fiore said. "Inputs, expressed as supplier deliveries, inventories and imports, had expansion increases, due primarily to negative supply chain issues."

Fiore noted despite the optimistic numbers from the PMI, which is averaging a 59.0% reading for the last 12 months, there was concern on several fronts apart from tariffs. "Lead-time extensions, steel and aluminum disruptions, supplier labor issues, and transportation difficulties continue," Fiore said in a press release. "Price pressure remains strong, but the index saw its first expansion softening since November 2017. Demand remains robust, but the nation's employment resources and supply chains continue to struggle."

For those companies affected by tariff changes and global trade, there are a number of concerns, as were reflected in the comments from committee members:

    Bob Vavra, content manager, CFE Media, bvavra(at)



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