US manufacturing activity slows in June

Activity in the US manufacturing sector slowed in June, according to data released on Monday.

IHS Markit's final purchasing managers' index fell to 52.0 from 52.7 in May, signalling the slowest rise in production volumes since September 2016 and weaker than analysts' expectations for an unchanged reading. Lower rates of output and new business growth were the main factors weighing on the headline PMI, which more than offset a stronger contribution from the stocks of purchases component.

Chris Williamson, chief business economist at IHS Markit, said: "Manufacturers reported a disappointing end to the second quarter, with few signs of growth picking up any time soon.

"The PMI has been sliding lower since the peak seen in January and the June reading points to a stagnation - at best - in the official manufacturing output data. The survey’s employment index meanwhile suggests that factories will make little or no contribution to non-farm payroll growth in June."

Dennis de Jong, managing director at UFX.com, said: “Trump promised plenty of spending on manufacturing infrastructure during his campaigning, but the gradual decline since January shows he’s failing to live up to those pledges. A further deterioration over the last month should give real cause for concern for a President who hung his hat on improving the American manufacturing industry.

“The US economy is still in rude health, but so far, Trump has failed to give it the shot in the arm that many thought he would.”