US manufacturing continues 4-month contraction
US factories just wrapped up their fourth straight month of shrinking business in June.
The main industry index nudged up a bit to 49.0, but that's still below the 50 mark—meaning things are still contracting, not growing.
The big reasons? Fewer new orders coming in and companies cutting jobs as demand stays weak.
Employment index slides to lowest in 3 months
New orders dropped again, making it five months in a row of decline, thanks to tariffs and slower economic activity.
Backlogs have shrunk for nearly three years straight, and the employment index slid to its lowest in three months—signaling more layoffs as factories try to match lower demand.
Production ticked up slightly, but material costs shot up
Not all bad news: production actually ticked up slightly, with nine industries like apparel and petroleum seeing some growth.
Still, six industries—especially textiles and wood products—kept shrinking.
Meanwhile, material costs shot up near their highest since mid-2022, squeezing profits even further.
Imports and exports still down
It's not just local business feeling the pinch; both imports and exports are still down (though not dropping as fast).
All this adds up to bigger worries about how these trends might drag on the broader US economy if things don't turn around soon.