ISM PMI analysis for the US economy in June 2019.

The PMI prices dropped in June from 53.2 to 47.9 because the US reduced its local raw material purchases (estimated -2.4) and imported more raw materials (+0.6) which were cheaper.

The inventories and supplier's deliveries declined because the manufacturing sector was just producing enough to fulfill the backlog of orders since the new order dropped in June that was caused by a fall in overseas order.  The rises in the employment, production and customers' inventories also reflected the phenomenon to fulfill existing orders instead of new orders.

The local new order (estimated +0.1) denoted that the local consumption was relatively unchanged and couldn't hold up the PMI headline number (51.7, -0.4).  The PMI has been falling for 3 consecutive months already and the 2nd QTR GDP will be much weaker than the 1st QTR GDP.

http://sg-stock.blogspot.com/2019/06/ism-pmi-analysis-for-us-economy.html