PMI June 2026: Manufacturing Continues to Expand, but Employment Remains a Challenge

(Illustrative Only)

Representing a couple
working in a small town 
downtown shop 
similar to Ludington Street 
in Escanaba. As an 
illustrative example,
this couple moved to the area
invested in a small town shop
that produces custom 
repair and products. 
Their speciality 
is horse saddles and 
high end riding boots
but will high end
purses and other 
leather products.
In this example, 
they export regionally
and at times
overseas. 

They expect
to move some
of their line from
custom to
production because
of the high demand. 
They needed a place
to try out designs
and expand. 

The Institute for Supply Management's June 2026 Manufacturing PMI registered 53.3%, signaling continued expansion in the U.S. manufacturing sector (Wood and paper products did not grow.). A PMI reading somewhere above 47-50 indicates growth, making this another positive month for an industry that remains an important driver of the nation's economy.

The report showed improvement in several areas, including new export orders and inventories. Other key indicators, such as new orders, production, and supplier deliveries, also remained in expansion territory, although growth moderated slightly compared with previous months.

One area that continues to lag is manufacturing employment, which remained in contraction. While companies are producing more goods, hiring has not kept pace with overall industry growth.

The report highlights both opportunities and challenges for manufacturers. Continued investment in innovation and workforce development will be essential to maintaining competitiveness in an increasingly complex global marketplace. Human capital remains one of the nation's greatest assets, and organizations that invest in employee skills, encourage collaboration, and create opportunities for new ideas are often better positioned to improve productivity and develop innovative products and services.

As manufacturers look ahead, expanding participation in decision-making and fostering a culture of continuous improvement may help generate the innovation needed for sustained growth. A stronger manufacturing sector, supported by a skilled workforce and a steady pipeline of new ideas, can enhance productivity, strengthen exports, and contribute to long-term economic prosperity. (Side note: Keep in mind there are general trends as they relate to concentration of wealth and decision making influence so this could be a data point in the understanding of that. Maybe-Maybe not but keep an eye on it as we try and understand the lay of the land to further foster positive development. At this point we just don't know yet. May have no influence.)

June 2026 ISM Manufacturing PMI Shows Continued Expansion Despite Slower Growth

• The ISM Manufacturing PMI registered 53.3% in June 2026, indicating the manufacturing sector expanded for the sixth consecutive month, although growth slowed slightly from May's 54.0%. A reading above 50 signals expansion.
• New orders remained strong at 56.0%, marking a sixth straight month of expansion, while production also continued to grow despite moderating from the previous month.
• Employment improved but remained just below the expansion threshold at 49.7%, suggesting hiring conditions stabilized even though manufacturers continued to face workforce challenges.
• Input cost pressures eased noticeably as the Prices Index declined, providing some relief from earlier inflationary pressures, though supplier deliveries continued to indicate ongoing supply chain constraints.
• Survey respondents expressed cautious optimism. While geopolitical uncertainty and tariffs remained concerns, most manufacturers expected continued economic expansion supported by healthy demand and improving business conditions.

Institute for Supply Management. (2026, July 1). June 2026 ISM manufacturing PMI report. https://www.ismworld.org/supply-management-news-and-reports/reports/ism-pmi-reports/pmi/june/