The U.S. ISM Manufacturing PMI for June slightly declined again to 48.5. As the first major economic data for June, this indicator has helped cool inflation expectations to some extent: the Manufacturing PMI further contracted slightly from 48.7 last month to 48.5, still in a marginal contraction state. However, key sub-items such as new orders have shown significant recovery within the contraction zone, indicating that the economic activity represented by this leading indicator is not a major concern.

A positive development this month is the continued decline in the Manufacturing Prices Index, dropping from 61 in April to 57 in May and further to 52 in June. The noticeable retreat of the price sub-index within the expansion zone suggests a narrowing slope in price increases, which is good news for inflation expectations.