ISM Manufacturing Prices Index Stays at 73.0 as Section 232 Tariffs Drive Persistent Input Costs
The June 2026 ISM Manufacturing PMI held at 53.3 for a sixth consecutive month of expansion, but the Prices Index at 73.0 remains well above historical norms despite a 9.1-point drop from May, with ISM Chair Susan Spence explicitly attributing sustained input-cost pressure to Section 232 metals tariffs, broader import duties, and Middle East energy effects. BLS data corroborates the signal: import prices rose 1.9 percent month-over-month in May and 6.7 percent year-over-year, the largest 12-month increase of any 2026 reading. A Kansas City Fed special survey question found nearly half of manufacturers have passed through less than 20 percent of cost increases to customers, indicating that the bulk of tariff-driven price pressure has yet to reach finished-goods and consumer prices.