Overview
- S&P Global's June flash U.S. Manufacturing PMI rose to 55.7, the highest reading in roughly four years and a clear signal of headline expansion.
- Despite the headline gain, manufacturing employment fell for a second month and factory job cuts are running at levels not seen since 2009 when the pandemic period is excluded.
- Survey details show firms rebuilt inventories to hedge against supply disruption, pushing new orders and output higher even though underlying demand remained weak.
- Vendor lead times stretched to their longest since August 2022 and input costs stayed elevated, which squeezed margins and helped prompt cost‑cutting through layoffs.
- S&P cautioned that the rebound may be temporary and that activity could slow once inventories normalize, a shift that would weigh on workers, corporate plans and the outlook for overall growth.