S&P: US factory job cuts in June neared financial-crisis and Covid levels
US factory job cuts in June approached levels last seen during the 2008-09 financial crisis and Covid era, S&P Global said. The headline manufacturing index ran better than expected, but the gains came largely from inventory rebuilding while employment readings fell to a six-year low.
Manufacturing data published by S&P Global on Tuesday showed the employment subindex at US factories falling to its weakest reading since 2009. The firm said the pace of layoffs is now running close to that seen during the global financial crisis and the pandemic.
The headline PMI came in at 52.9, beating expectations, but S&P economist Chris Williamson said the increase reflected inventory rebuilding rather than genuine demand. New orders contracted for a sixth straight month, and manufacturers cited tariff uncertainty and energy costs as the biggest pressures.
The figures will sharpen the debate inside the Federal Reserve ahead of its September meeting. Bond markets repriced toward earlier rate cuts, with the two-year Treasury yield dropping 6 basis points. Steel, chemicals and auto suppliers led the declines in the underlying components.
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