US manufacturing output index falls to 24-month low

By Ovunc Kutlu

ANKARA (AA) - US manufacturing output index fell to its lowest level in 24 months, according to a report by the US-based financial services company S&P Global released Thursday.

The index came in at 49.6 in June, down 5.6 points from 55.2 in May.

While a level above 50 indicates expansion, below 50 signals contraction.

S&P Global said the weak data points to the weakest upturn in US private sector output since the omicron-induced coronavirus slowdown in January.

"Weaker demand conditions, often linked to the rising cost of living and falling confidence, led to the first contraction in new orders since July 2020," it said.

The US manufacturing purchasing managers' index (PMI) also fell to 52.4 in June, down 4.6 points from 57.0 in May -- recording its lowest level in 23 months.

"Manufacturers fared worse, with factory production slipping into decline as the respective seasonally adjusted index fell to a degree only exceeded twice in the 15-year history of the survey, at the height of the initial pandemic lockdowns in 2020 and the height of the global financial crisis in 2008," it added.