{"id":431258,"date":"2026-06-01T21:40:26","date_gmt":"2026-06-01T14:40:26","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/2026\/06\/ism-manufacturing-rises-to-the-highest-since-2022\/"},"modified":"2026-06-01T21:40:26","modified_gmt":"2026-06-01T14:40:26","slug":"ism-manufacturing-rises-to-the-highest-since-2022","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/2026\/06\/ism-manufacturing-rises-to-the-highest-since-2022\/","title":{"rendered":"ISM manufacturing rises to the highest since 2022"},"content":{"rendered":"<div>\n<ul class=\"[li_&amp;]:mb-0 [li_&amp;]:mt-1 [li_&amp;]:gap-1 [&amp;:not(:last-child)_ul]:pb-1 [&amp;:not(:last-child)_ol]:pb-1 list-disc flex flex-col gap-1 pl-8 mb-3\">\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Prior 52.7<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Highest reading since May 2022<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">New orders 56.8 vs 54.1 prior<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Production 54.3 vs 53.4 prior<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Employment 48.6 vs 46.4 prior<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">Prices paid 82.1 vs 84.6 prior<\/li>\n<li class=\"font-claude-response-body whitespace-normal break-words pl-2\">New export orders 50.6 vs 47.9 prior \u2014 back in expansion<\/li>\n<\/ul>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">This is a strong headline number and it&#8217;s the fifth straight month of expansion, but I&#8217;d be careful about taking the victory lap at face value.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The internals are genuinely good. New orders accelerating to 56.8 is the part that matters most \u2014 that&#8217;s the forward-looking piece, and it&#8217;s running well clear of the contraction lows from earlier in the cycle. Export orders clawing back above 50 and customers&#8217; inventories sitting at a &#8216;too low&#8217; 42.7 both point to a production tailwind into the summer. This is exactly the shape of report you want to see if you&#8217;re constructive on the manufacturing cycle.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Prices paid is the index to watch here. It eased to 82.1 from 84.6, which technically counts as a &#8216;good&#8217; move, but an 82-handle is still screaming cost pressure.  With oil sensitive to the Iran headlines, the disinflation-on-prices-paid story is one bad weekend away from reversing.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Employment at 48.6 is still in contraction, and the report&#8217;s own breakdown \u2014 half the panel holding head counts steady, half hiring \u2014 is not the labor backdrop of a sector firing on all cylinders. It&#8217;s improving though.<\/p>\n<p>Comments in the report:<\/p>\n<ul>\n<li>\u201cImpact of Iran conflict starting to directly and negatively impact<br \/>\ncost of supply chain. Oil and related commodities are escalating in<br \/>\nprice.\u201d [Transportation Equipment]<\/li>\n<li>\u201cThe Middle East conflict is triggering shipment delays and<br \/>\nuncertainties. Elevated gas prices and inflation will surely impact our<br \/>\npurchases. However, over the last quarter, we\u2019ve seen increased demand<br \/>\nthat was unexpected.\u201d [Machinery]<\/li>\n<li>\u201cAs with all companies, we have felt the effects of fuel-related<br \/>\ninflation and general market uncertainty due to overall economic<br \/>\nvariability and geopolitical events that have impacted such markets as<br \/>\nconstruction, automotive and agriculture, as well as the general<br \/>\nindustrial sector.\u201d [Chemical Products]<\/li>\n<li>\u201cContinuing trends of 15-percent sales increase in April, cost<br \/>\nincreases on a majority of raw materials, and fuel charges on many<br \/>\ninbound and outbound deliveries. We remain cautiously optimistic that if<br \/>\n global economic factors stabilize and the Iran conflict ends, we can<br \/>\ncontinue with increased sales and maintain acceptable margins.\u201d<br \/>\n[Chemical Products]<\/li>\n<li>\u201cCost of diesel is having huge impacts on our profitability.<br \/>\nConfusion abounds around tariff refunds. We purchase many imported goods<br \/>\n but in most cases are not the importer of record, so it is currently<br \/>\nunclear to what we may be entitled.\u201d [Food, Beverage &amp; Tobacco<br \/>\nProducts]<\/li>\n<li>\u201cPrices continue to rise for many products \u2014 some due to increase in<br \/>\n data center creation for electronic components, others as a result of<br \/>\nthe Iran war and reductions in availability of oil\/petroleum.\u201d [Computer<br \/>\n &amp; Electronic Products]<\/li>\n<li>\u201cSupply constraints continue to propagate and are a key headwind to<br \/>\nsupporting increased aerospace and defense demand. Semiconductors,<br \/>\ncritical minerals and certain types of raw materials are illustrative<br \/>\nexamples of sales plans at risk. Corporate risk mitigation actions are<br \/>\nunderway to secure supply in the midst of constraints.\u201d [Transportation<br \/>\nEquipment]<\/li>\n<li>\u201cThe current atmosphere is one of extreme uncertainty and concern<br \/>\nfor the future in terms of both price stability and longer-term supply<br \/>\ncontinuity related to the Iran conflict and Strait of Hormuz closure. We<br \/>\n have a lot of negotiations in process related to requested price<br \/>\nincreases, some related to oil prices and some still fallout from the<br \/>\n2025 tariff\/geopolitical climate.\u201d [Miscellaneous Manufacturing]<\/li>\n<li>\u201cContinued dynamic random-access memory (DRAM) volatility, increased<br \/>\n gas prices and tariffs are causing long lead constraints and price<br \/>\nhikes that customers are not willing to bear. Panic is starting within<br \/>\nour industry.\u201d [Electrical Equipment, Appliances &amp; Components]<\/li>\n<li>\u201cBusiness appears to be weakening \u2014 uncertainty surrounding the Iran<br \/>\n war, rising energy prices and customers unwilling to commit to<br \/>\nexpenditures beyond a very short term.\u201d [Fabricated Metal Products]<\/li>\n<\/ul>\n<p>Earlier, the S&amp;P Global US PMI was revised slightly lower to 55.1 from 55.3 in the preliminary report. The prior was 54.5 so it was still month-to-month improvement.<\/p>\n<p>Finally, April US construction spending rose 0.4%, better than the 0.2% consensus.<\/p>\n<p>                            This article was written by Adam Button at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Prior 52.7 Highest reading since May 2022 New orders 56.8 vs 54.1 prior Production 54.3 vs 53.4 prior Employment 48.6 vs 46.4 prior Prices paid 82.1 vs 84.6 prior New export orders 50.6 vs 47.9 prior \u2014 back in expansion This is a strong headline number and it&#8217;s the fifth straight month of expansion, but [&hellip;]<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-431258","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/431258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=431258"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/431258\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=431258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=431258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=431258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}