June ISM manufacturing: Softer pipeline cost pressures

Research evidence excerpt

June ISM manufacturing: Softer pipeline cost pressures

FICC Research

Economics

1 July 2026

US Economics

June ISM manufacturing: Softer

pipeline cost pressures

June ISM softened somewhat amid mixed component Marc Giannoni

readings, but remains in a range consistent with solid growth +1 212 526 9373

marc.giannoni@barclays.com

and gains in labor demand. Pipeline cost pressures softened BCI, US

following recent declines in energy prices, but remain Jonathan Millar

elevated by historical norms. +1 212 526 4876 jonathan.millar@barclays.com

BCI, US

The ISM manufacturing composite retreated 0.7pts in June, to 53.3, amid mixed readings Pooja Sriram

across major components. June's somewhat softer headline came in below expectations +1 212 526 0713

(Barclays: 54.5; consensus: 53.9), but remains well within the range that we regard as consistent pooja.sriram@barclays.com

with solid increases in manufacturing activity. The softer ISM headline was accompanied by a BCI, US

decline in the "final" June reading from the S&P Global US manufacturing PMI of 53.9, down Colin Johanson

1.8pts from the earlier "flash" print. +1 212 526 8536

colin.johanson@barclays.com

June's somewhat softer ISM reading reflected mixed movements across indicators, with BCI, US

declines in production, new orders, and supplier delivery times, partially offset by some

improvement in employment and inventory investment (Figure 1).

Cost pressures diminished in June, but remain elevated. June's prices paid index softened

9.1pts to 73.0, likely reflecting declines in energy prices during the month amid the discussions

(and June 17 signing) of the MOU to halt hostilities between the US and Iran. Responses would

have been collected from mid- to late-June, leaving plenty of time for that effect to be reflected