Manufacturing Stumbles, Services Steady: A Mixed Economic Picture

Expected to exhibit a small increase in its PMI, the manufacturing sector in June 2025 was forecast to go from 49. 5 to an anticipated 49. 7. Although this small increase, the PMI was forecast to remain below the 50-point threshold, therefore pointing to a continuing fall in manufacturing output. Typical seasonal dips seen in June are reflected in this trend, which is further backed by recent data from growing industries that also points to weakening inside the manufacturing sector.

In contrast, the non-manufacturing PMI for June 2025 was projected to stay at 50. 3, therefore staying within the growth area. This implies that the construction and service industries are still expanding, though at a rather slow rate.

Generally, the economic scene shows contradictory signals. The manufacturing industry still has major problems including low local demand, the effects of US tariffs, and continuous deflation. Although the non-manufacturing sector is growing, its expansion is slight and inadequate to balance the greater economic slump.