US Manufacturing Activity Plummets, Signaling Potential Downturn

Despite the US manufacturing activity dropping to levels last seen during the pandemic, the US Treasury prices remain mixed and the dollar is unchanged on Wall Street. The latest ISM survey indicates that businesses are proceeding cautiously, with the new orders sub-index rising to 45.6 from 42.6 in May. While machinery manufacturers reported steady orders, weak demand is causing some prices and employment to suffer. Government reports are expected to show slower hiring by the end of the year. Nonetheless, investment in single-family housing projects is rising, leading to an overall increase in construction spending in May.