The growth of the manufacturing industry in the United States is stable, and two inflation indicators have reached their highest levels in nearly three years.

Thanks to a faster increase in employment, US manufacturing growth remained stable in June, but two inflation indicators rose to their highest levels since July 2022. According to data released on Monday, the S&P Global Manufacturing Purchasing Managers' Index held steady at 52 in June, the highest since February. A reading above 50 indicates expansion in the manufacturing sector. The input prices index rose by 5.4 points to 70, the largest increase in four years. The output prices index also saw a similar increase, indicating that manufacturers are passing on cost increases, including import tariffs, to customers. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, stated, "Although domestic demand, especially in manufacturing, is expected to drive employment growth, some of this growth is being driven by inventory building, which is often linked to price increases and supply concerns caused by tariffs." Williamson added, "Inventory build-up may gradually fade in the coming months." Manufacturing employment growth is at its fastest pace in a year.