“Demand remains robust, but the nation’s employment resources and supply chains continue to struggle,” said. Timothy R. Fiore, chair of the ISM Business Survey. “Committee respondents are overwhelmingly concerned about how tariff related activity is and will continue to affect their business.”

The June PMI registered 60.2 percent, an increase of 1.5 percentage points from the May reading of 58.7 percent.

Other highlights from the report:

• The New Orders Index registered 63.5 percent, compared to the May reading of 63.7 percent.

• The Production Index registered 62.3 percent, compared to the May reading of 61.5 percent.

• The Employment Index registered 56 percent, compared to the May reading of 56.3 percent.

• The Supplier Deliveries Index registered 68.2 percent, compared to the May reading of 62 percent.

• The Inventories Index registered 50.8 percent, compared to the May reading of 50.2 percent.

• The Prices Index registered 76.8 percent in June, compared to the May reading of 79.5 percent, indicating higher raw materials prices for the 28th consecutive month.

With the good news, there are still some challenges. “Lead-time extensions, steel and aluminum disruptions, supplier labor issues, and transportation difficulties continue,” said Fiore.

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