The S&P Global manufacturing PMI rose again to 55.7 from 55.1 – and continues to be boosted by restocking of inventories. But the mixed and uneven economy continues, with the pockets of strength highly concentrated, maintains Peter Boockvar, editor of The Boock Report.
S&P Global said: “While there is better news from the manufacturing sector, we remain concerned as factory growth continues to be temporarily buoyed by inventory building amid supply fears. Supply delays grew more widespread in June.”
(Editor’s Note: Peter is speaking at the 2026 MoneyShow/TradersEXPO Orlando, scheduled for Oct. 5-7. Click HERE to register.)
Global Manufacturing PMI
Also of note: “Most worrying was the further fall in employment, notably in the manufacturing sector. Factory job cuts are running at the highest since 2009 if the pandemic is excluded, reflecting concerns over the sustainability of the recent upturn in demand alongside worries over the escalating cost of raw materials.”
The service component also doesn’t include retail and wholesale trade or construction. Those are key missing pieces of the US economy, so we'll need more data on them later.
Bottom line: There is strength in AI data center construction and upper income spend. But that’s very dependent on the GenAI stock trade that is in turn lifting the indices. Also, as we’ve said for months, the improvement in manufacturing is in part due to the front-loading of orders. We’ll now see how it performs post-Strait of Hormuz reopening.
