Updated
Updated · CNBC · Jun 23
US Factory Job Cuts Hit Highest Since 2009 as June PMI Rises to 55.7
Updated
Updated · CNBC · Jun 23

US Factory Job Cuts Hit Highest Since 2009 as June PMI Rises to 55.7

1 articles · Updated · CNBC · Jun 23

Summary

  • June factory layoffs ran near their highest level since 2009—excluding the 2020 pandemic shock—even as S&P Global’s manufacturing flash PMI beat forecasts at 55.7.
  • S&P said the apparent factory strength was driven largely by inventory rebuilding, while manufacturers cut headcount over weaker demand worries, rising raw-material costs and broader supply delays.
  • Chris Williamson said the survey points to output consistent with the economy growing at little more than a 1% annualized rate in the second quarter, after 1.6% in Q1.
  • The weakness in factory hiring contrasts with a still-firm national labor picture: manufacturing employment is up 23,000 in 2026, while services PMI also edged higher to 51.3.
  • Businesses have also faced an inflation flare-up tied to higher energy prices and Middle East tensions, though a recent oil pullback after ceasefire headlines has restored some confidence.

Insights

Can an AI productivity boom allow the Fed to cut rates, or will soaring energy demand force hikes?
With AI data centers demanding immense power, is the U.S. trading a jobs crisis for an energy crisis?
As traditional factories cut jobs, is an AI-driven boom creating a new, more exclusive industrial economy?