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ISM REPORTS ECONOMIC ACTIVITY TO EXPAND THROUGH 2026

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Manufacturing Expected to Expand in 2026; Revenue to Increase 8.4%; Capital Expenditures to Increase 4.9%; Capacity Utilization at 86.9%; Services Expected to Expand in 2026; Revenue to Increase 8.6%; Capital Expenditures to Increase 6.4%; Capacity Utilization at 91.3%

TEMPE, Ariz., June 17, 2026 /PRNewswire/ — The U.S. economy is expected to continue to expand over the rest of 2026, say the nation’s purchasing and supply executives in the Spring 2026 ISM Supply Chain Planning Forecast (formerly known as the Spring ISM Semiannual Economic Forecast). Expectations for the remainder of 2026 are higher than those expressed in December 2025. The U.S. economy continues to successfully battle the headwinds posed by trade issues, continued inflation concerns, and geopolitical uncertainty.

These projections are part of the forecast issued by Institute for Supply Management® (ISM®) Business Survey panelists. The forecast was presented today by Susan Spence, MBA, Chair of the ISM Manufacturing Business Survey Committee, and Steve Miller, CPSM, CSCP, Chair of the ISM Services Business Survey Committee.

Manufacturing Summary
Revenue for 2026 is expected to increase, on average, by 8.4 percent. This is 4 percentage points higher than the December 2025 forecast of 4.4 percent, and 5.9 percentage points higher than the 2.5 percentage point year-over-year increase reported for 2025. Eighty-two percent of respondents say that revenues for 2026 will increase, on average, 12.7 percent compared to 2025. Seventeen percent say revenues will decrease (12 percent, on average), and zero percent indicate no change. With an operating rate of 86.9 percent, a projected 4.9 percent increase in capital expenditures, a 14.1-percent increase in prices paid for raw materials and a marginal (1.4 percent) increase in employment expected by the end of 2026, the manufacturing sector will continue to grow through 2026. “With 14 manufacturing industries expecting revenue growth and seven industries expecting employment growth in 2026, panelists forecast a healthy rest of the year. Sentiment in each industry was generally consistent with performance reports in the May 2026 Manufacturing ISM® PMI® Reports, as well as the fall ISM Supply Chain Planning Forecast released in December,” says Spence.

The 14 of 18 industries that report projected revenue increases for the rest of 2026, listed in order, are: Nonmetallic Mineral Products; Paper Products; Primary Metals; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Printing & Related Support Activities; Transportation Equipment; Food, Beverage & Tobacco Products; Computer & Electronic Products; Furniture & Related Products; Miscellaneous Manufacturing; Machinery; and Chemical Products.

Services Summary
Respondents expect 8.6 percent growth in revenues in 2026, 4 percentage points higher than the 4.6-percent increase forecast in December 2025. Eighty-one percent of respondents say that revenues for 2026 will increase, on average, 12.9 percent compared to 2025. Meanwhile, 15 percent expect their revenues to decrease (11.3 percent, on average), and 4 percent indicate no change. “The services sector will continue to lead the economy in 2026. Services companies are currently operating at 91.3 percent of normal capacity. Supply managers indicate that prices are expected to increase 8.9 percent over the year, reflecting increasing inflation. Employment is projected to grow only slightly (0.9 percentage point). Sixteen industries forecast increased revenues, the same as predicted in in December 2025,” says Miller.

The 16 services industries projecting revenue increases in 2026, listed in order, are: Mining; Retail Trade; Finance & Insurance; Wholesale Trade; Arts, Entertainment & Recreation; Other Services; Real Estate, Rental & Leasing; Public Administration; Information; Utilities; Professional, Scientific & Technical Services; Health Care & Social Assistance; Management of Companies & Support Services; Accommodation & Food Services; Educational Services; and Transportation & Warehousing.

OPERATING RATE

Manufacturing
Purchasing and supply executives report that their companies are operating, on average, at 86.9 percent of normal capacity, 4.5 percentage points higher than the figure reported in December 2025. The six industries reporting operating capacity levels above the average rate of 86.9 percent — listed in order — are: Nonmetallic Mineral Products; Paper Products; Primary Metals; Transportation Equipment; Computer & Electronic Products; and Fabricated Metal Products.

Services
Organizations are operating, on average, at 91.3 percent of normal capacity, according to Business Survey panelists. This is 1.1 percentage points higher compared to December 2025. The eight industries operating at capacity levels above the average rate of 91.3 percent — listed in order — are: Mining; Retail Trade; Educational Services; Utilities; Finance & Insurance; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Transportation & Warehousing.

Operating Rate

Manufacturing

Services

May
2025

Dec
2025

Jun*
2026

May

2025

Dec

2025

Jun

2026

90%+

37 %

39 %

44 %

49 %

67 %

51 %

50%-89%

55 %

60 %

53 %

48 %

32 %

44 %

Below 50%

8 %

1 %

3 %

3 %

1 %

5 %

Overall Average

79.2 %

82.4 %

86.9 %

86.5 %

90.2 %

91.3 %

*All June data reflects a reissued survey following a technical data-capture issue identified during final quality checks in May.

PRODUCTION CAPACITY

Manufacturing
Production capacity is expected to increase 9.7 percent in 2026. In December, panelists reported an increase of 2.8 percentage points for 2025 and projected an increase of 5.2 percent this year. Seventy-six percent of respondents expect capacity increases in 2026. Sixteen percent expect decreases, on average, of 13.6 percent; and 8 percent expect no change. The 14 industries expecting increased production capacity in 2026 — listed in order — are: Nonmetallic Mineral Products; Wood Products; Printing & Related Support Activities; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Fabricated Metal Products; Miscellaneous Manufacturing; Plastics & Rubber Products; Primary Metals; Chemical Products; Machinery; Furniture & Related Products; and Food, Beverage & Tobacco Products.

Manufacturing Production Capacity

For 2025

For 2026

For 2026

Reported
Dec 2025

Magnitude
of Change

Predicted

Dec 2025

Magnitude
of Change

Predicted
Jun 2026

Magnitude
of Change

Higher

33 %

+12.7 %

46 %

+12.6 %

76 %

+15.8 %

Same

52 %

NA

48 %

NA

8 %

NA

Lower

15 %

-8.8 %

6 %

-11.5 %

16 %

-13.6 %

Net Average

+2.8 %

+5.2 %

+9.7 %

Services
The capacity to produce products or provide services in the services sector is expected to increase 7.1 percent in 2026. This compares to an increase of 3 percent reported for 2025 and a December projection of a 2.1-percent increase for this year. Seventy-nine percent of services respondents expect their capacity for 2026 to increase, on average, 13.6 percent, and 14 percent foresee capacity decreasing, on average, 25.3 percent. Seven percent expect no change in capacity. The 15 industries expecting production capacity increases for 2026 — listed in order — are: Mining; Retail Trade; Construction; Arts, Entertainment & Recreation; Management of Companies & Support Services; Accommodation & Food Services; Real Estate, Rental & Leasing; Wholesale Trade; Transportation & Warehousing; Professional, Scientific & Technical Services; Information; Educational Services; Health Care & Social Assistance; Utilities; and Public Administration.

Services Production or Provision Capacity

For 2025

For 2026

For 2026

Reported

Dec 2025

Magnitude
of Change

Predicted

Dec 2025

Magnitude
of Change

Predicted
Jun 2026

Magnitude
of Change

Higher

28 %

+11.6 %

21 %

+11.1 %

79 %

+13.6 %

Same

68 %

NA

73 %

NA

7 %

NA

Lower

4 %

-8.6 %

6 %

-4.9 %

14 %

-25.3 %

Net Average

+3.0 %

+2.1 %

+7.1 %

PREDICTED CAPITAL EXPENDITURES — 2026 vs. 2025

Manufacturing
Survey respondents expect a 4.9 percent increase in capital expenditures in 2026, 1.9 percentage points higher than the 3 percent increase forecast by the panel in December. Sixty percent of respondents predict increased capital expenditures in 2026, 34 percent said their capital spending will decrease (on average, 23.7 percent), and 6 percent expect no change. The 10 industries expecting an increase in capital expenditures for 2026 — listed in order — are: Nonmetallic Mineral Products; Primary Metals; Printing & Related Support Activities; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Transportation Equipment; Fabricated Metal Products; Machinery; and Food, Beverage & Tobacco Products.

Services
This year, services purchasing and supply executives expect capital expenditures to increase 6.4 percent compared to 2025. The 70 percent of respondents expecting to spend more predict an average increase of 14.4 percent, 23 percent anticipate an average decrease of 15.5 percent, and 7 percent expect no change in capital expenditures in 2026. The 15 industries expecting an increase in capital expenditures, in order, are: Mining; Retail Trade; Construction; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Other Services; Public Administration; Information; Health Care & Social Assistance; Wholesale Trade; Utilities; Educational Services; Professional, Scientific & Technical Services; Finance & Insurance; and Transportation & Warehousing.

Predicted Capital Expenditures 2026 vs. 2025

Manufacturing

Services

Predicted

Dec 2025

Predicted
Jun 2026

Magnitude
of Change

Predicted

Dec 2025

Predicted
Jun 2026

Magnitude
of Change

Higher

32 %

60 %

+21.1 %

37 %

70 %

+14.4 %

Same

46 %

6 %

NA

51 %

7 %

NA

Lower

22 %

34 %

-23.7 %

12 %

23 %

-15.5 %

Net Average

+3.0 %

+4.9 %

+2.5 %

+6.4 %

PRICES — Changes Between End of 2025 and June 2026

Manufacturing
In the December forecast, respondents predicted an increase of 5.4 percent in prices paid during the first four months of 2026; they now report price increases by 11.9 percent. Ninety-four percent of respondents reported that their prices are higher now than at the end of 2025 with an average increase of 13.3 percent for the early months of 2026. Five percent of respondents reported lower prices (by 13.7 percent, on average). The remaining 1 percent indicated no change for the period. Seventeen manufacturing industries reported an increase in prices paid for the first part of 2026, in the following order: Nonmetallic Mineral Products; Paper Products; Primary Metals; Transportation Equipment; Computer & Electronic Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Wood Products; Plastics & Rubber Products; Furniture & Related Products; Printing & Related Support Activities; Apparel, Leather & Allied Products; Petroleum & Coal Products; Machinery; Chemical Products; Food, Beverage & Tobacco Products; and Miscellaneous Manufacturing.

Services
Services respondents report that purchases during the first five months of this year cost an average of 7.7 percent more than at the end of 2025. This is more than double the percentage increase predicted in December (3.8 percent). Ninety-four percent of services respondents report that prices increased, on average, 9.8 percent; 5 percent report price decreases of, on average, 26.1 percent; and 1 percent indicate no change. All 18 industries reported an increase in prices paid in the first part of 2026, listed in order: Mining; Educational Services; Finance & Insurance; Transportation & Warehousing; Construction; Public Administration; Arts, Entertainment & Recreation; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Other Services; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Health Care & Social Assistance; Utilities; Wholesale Trade; Information; Retail Trade; and Accommodation & Food Services.

Prices — Changes Between End of 2025 and June 2026

Manufacturing

Services

Predicted

Dec 2025

Reported
Jun 2026

Magnitude
of Change

Predicted

Dec 2025

Reported
Jun 2026

Magnitude
of Change

Higher

69 %

94 %

+13.3 %

64 %

94 %

+9.8 %

Same

23 %

1 %

NA

34 %

1 %

NA

Lower

8 %

5 %

-13.7 %

2 %

5 %

-26.1 %

Net Average

+5.4 %

+11.9 %

+3.8 %

+7.7 %

PRICES — Predicted Changes Between End of 2025 and End of 2026

Manufacturing
Survey respondents expect a year-over-year, net-average prices increase of 14.1 percent for 2026. With respondents reporting price increases of 11.9 percent, prices are projected to continue to increase for the rest of the year. Ninety-seven percent of respondents project prices to increase, on average, 14.6 percent for the full year, 2 percent anticipate a decrease (4.7 percent, on average), and 1 percent expect no change. The 17 industries expecting price increases for all of 2026, listed in order, are: Nonmetallic Mineral Products; Paper Products; Primary Metals; Transportation Equipment; Fabricated Metal Products; Machinery; Electrical Equipment, Appliances & Components; Wood Products; Plastics & Rubber Products; Furniture & Related Products; Printing & Related Support Activities; Apparel, Leather & Allied Products; Petroleum & Coal Products; Chemical Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; and Miscellaneous Manufacturing.

Services
This year, services respondents expect prices to increase, on average, 8.9 percent compared to the end of 2025. With respondents reporting an increase of 7.7 percent through June 2026, prices are projected to increase somewhat over the rest of the year. Ninety-five percent of respondents anticipate increases of, on average, 10.5 percent; 3 percent expect decreases of, on average, 41 percent; and 2 percent do not expect prices to change. All 18 industries project price increases for all of 2026, listed in order: Mining; Retail Trade; Educational Services; Finance & Insurance; Health Care & Social Assistance; Transportation & Warehousing; Construction; Arts, Entertainment & Recreation; Management of Companies & Support Services; Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Other Services; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Public Administration; Utilities; Wholesale Trade; and Information.

Prices — Predicted Changes Between End of 2025 and End of 2026

Manufacturing

Services

Predicted

Dec 2025

Predicted
Jun 2026

Magnitude
of Change

Predicted

Dec 2025

Predicted
Jun 2026

Magnitude
of Change

Higher

66 %

97 %

+14.6 %

65 %

95 %

+10.5 %

Same

26 %

1 %

NA

34 %

2 %

NA

Lower

8 %

2 %

-4.7 %

1 %

3 %

-41.0 %

Net Average

+4.4 %

+14.1 %

+4.2 %

+8.9 %

EMPLOYMENT

Employment — Predicted Changes Between End of 2025 and End of 2026

Manufacturing
ISM’s Manufacturing Business Survey panelists forecast that sector employment in 2026 will increase 1.4 percentage points year over year. Forty-nine percent of respondents expect employment to be, on average, 7.6 percent higher; 41 percent predict employment to decrease, on average, 5.8 percent; and 10 percent expect employment levels to be unchanged. The seven industries projecting employment growth during 2026 — listed in order — are: Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Furniture & Related Products; Computer & Electronic Products; Machinery; Transportation Equipment; and Food, Beverage & Tobacco Products.

Services
Sector employment will increase 0.9 percentage point in 2026, according to the forecast of ISM’s Services Business Survey panelists. For the rest of the year, 53 percent expect employment to increase, on average, 7.7 percent; 30 percent anticipate employment to decrease, on average, 10.7 percent; and 17 percent expect no change in employment levels. The nine industries anticipating increases in employment — in the following order — are: Retail Trade; Construction; Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Wholesale Trade; Professional, Scientific & Technical Services; Utilities; Information; and Educational Services.

Employment — Predicted Changes Between End of 2025 and End of 2026

Manufacturing

Services

Predicted
for 2026

Dec 2025

Predicted

Jun 2026

Magnitude
of Change

Predicted
for 2026

Dec 2025

Predicted

Jun 2026

Magnitude
of Change

Higher

27 %

49 %

+7.6 %

40 %

53 %

+7.7 %

Same

53 %

10 %

NA

47 %

17 %

NA

Lower

20 %

41 %

-5.8 %

13 %

30 %

-10.7 %

Net Average

+0.4 %

+1.4 %

+2.5 %

+0.9 %

BUSINESS REVENUES

Business Revenues Comparison — 2026 vs. 2025

Manufacturing
Revenues are expected to increase this year as purchasing and supply management executives predict an overall net increase of 8.4 percent compared to 2025. This is 4 percentage points higher than the 4.4-percent increase forecast in December, and 5.9 percentage points higher than the 2.5-percentage point year-over-year increase reported for 2025. Eighty-two percent of respondents say that revenues for 2026 will increase, on average, 12.7 percent; 17 percent say their revenues will decrease, on average, 12 percent; and 0 percent forecast no change. The 14 manufacturing industries expecting increases in revenue in 2026 — listed in order — are: Nonmetallic Mineral Products; Paper Products; Primary Metals; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Printing & Related Support Activities; Transportation Equipment; Food, Beverage & Tobacco Products; Computer & Electronic Products; Furniture & Related Products; Miscellaneous Manufacturing; Machinery; and Chemical Products.

Manufacturing Business Revenue

2025 vs. 2024

2026 vs. 2025

Reported

Dec 2025

% Change

Predicted

Dec 2025

% Change

Predicted

Jun 2026

% Change

Higher

44 %

+12.1 %

56 %

+8.9 %

82 %

+12.7 %

Same

29 %

NA

36 %

NA

0 %

NA

Lower

27 %

-10.2 %

8 %

-8.1 %

17 %

-12.0 %

Net Average

+2.5 %

+4.4 %

+8.4 %

Services
Services purchasing and supply management executives predict growth in sector business revenue compared to 2025. They forecast an increase of 8.6 percent, much higher than the 4.6-percent increase forecast in December, and 4.4 percentage points higher than the 4.2-percent increase reported for 2025. Eighty-one percent of respondents indicate revenues for 2026 will increase, on average, 12.9 percent; 16 percent say their revenues will decrease, on average, 11.3 percent; and 4 percent expect no change. Sixteen of 18 services industries project revenue increases in 2026, listed in order: Mining; Retail Trade; Finance & Insurance; Wholesale Trade; Arts, Entertainment & Recreation; Other Services; Real Estate, Rental & Leasing; Public Administration; Information; Utilities; Professional, Scientific & Technical Services; Health Care & Social Assistance; Management of Companies & Support Services; Accommodation & Food Services; Educational Services; and Transportation & Warehousing.

Services Business Revenue

2025 vs. 2024

2026 vs. 2025

Reported

Dec 2025

% Change

Predicted

Dec 2025

% Change

Predicted

Jun 2026

% Change

Higher

55 %

+9.3 %

54 %

+10.1 %

81 %

+12.9 %

Same

36 %

NA

36 %

NA

4 %

NA

Lower

9 %

-9.3 %

10 %

-9.9 %

15 %

-11.3 %

Net Average

+4.2 %

+4.6 %

+8.6 %

SPECIAL QUESTION TOPIC No. 1: ADJUSTING INVENTORY STOCKING STRATEGIES AMID GLOBAL TARIFF UNCERTAINTY

We asked panelists, “Have you changed your company’s inventory stocking requirements to manage input pricing risks from global tariff negotiations and actions?”

Answer options:

Yes, we are requiring higher levels of inventoryYes, we are requiring lower levels of inventoryNo, we haven’t changed our requirementsDo not measure input inventories

Respondents indicated:

Adjusting Inventory Stocking Strategies

Manufacturing

Services

Reported
May 2025

Reported Jun
2026

Reported
May 2025

Reported Jun
2026

Yes, we are requiring higher levels of
inventory

32 %

32 %

16 %

10 %

Yes, we are requiring lower levels of
inventory

17 %

49 %

9 %

7 %

No, we haven’t changed our
requirements

51 %

16 %

37 %

37 %

Do not measure input inventories

0 %

3 %

39 %

46 %

SPECIAL QUESTION TOPIC No. 2: PRICE ADJUSTMENTS IN RESPONSE TO TARIFFS

We asked panelists, “How do you plan to change your selling prices for products or services in response to tariffs?”

Answer options:

We plan to pass on all of the cost increases into sales pricesWe plan to pass on some of the cost increases into sales prices and to absorb some through reduced marginsWe plan to pass on some of the cost increases into sales prices and to pass on the rest to other untariffed products or services we provideWe plan to absorb all of cost increases through reduced marginsOur costs will not be affected by tariffs, but we plan to use tariffs as an opportunity to raise pricesOur costs will not be affected by tariffs, and we do not plan to change prices because of tariffs

Respondents indicated:

Price Adjustments in Response to Tariffs

Manufacturing

Services

Reported May
2025

Reported
Jun 2026

Reported
May 2025

Reported
Jun 2026

We plan to pass on all of the cost
increases into sales prices

35 %

26 %

23 %

20 %

We plan to pass on some of the cost
increases into sales prices and to
absorb some through reduced margins

52 %

46 %

28 %

22 %

We plan to pass on some of the cost
increases into sales prices and to pass
on the rest to other untariffed products
or services we provide

4 %

5 %

8 %

12 %

We plan to absorb all of cost increases
through reduced margins

3 %

17 %

14 %

20 %

Our costs will not be affected by tariffs,
but we plan to use tariffs as an
opportunity to raise prices

2 %

2 %

4 %

1 %

Our costs will not be affected by tariffs,
and we do not plan to change prices
because of tariffs

5 %

4 %

23 %

25 %

SPECIAL QUESTION TOPIC No. 3: ALTERNATIVE STRATEGIES TO NAVIGATE TRADE POLICY CHANGES

We asked panelists, “Besides raising prices, what other strategies are you implementing in response to recent or anticipated changes in trade policies?”

Answer options:

We plan to increase inventory of imported inputsWe plan to change the mix of products we sellWe plan to change the specifications of products we sellWe plan to reshore production domestically or move it to other countriesOther (reasons)

Respondents indicated:

Strategies Beyond Price Hikes

Manufacturing

Services

Reported May
2025

Reported
Jun 2026

Reported May
2025

Reported Jun
2026

We plan to increase inventory of
imported inputs

13 %

18 %

15 %

6 %

We plan to change the mix of
products we sell

12 %

12 %

16 %

19 %

We plan to change the
specifications of products we sell

7 %

12 %

9 %

13 %

We plan to reshore production
domestically or move it to other
countries

40 %

38 %

20 %

30 %

Other

28 %

20 %

41 %

32 %

SPECIAL QUESTION TOPIC No. 4: PLANS TO RESHORE PRODUCTION

We asked panelists, “In the next six months, does your organization plan to reshore final or intermediate production from abroad?”

Answer options:

Yes, we are actively looking into shifting production to the U.S. from abroadYes, we are actively looking into shifting production domestically, but our plan will take longer than six monthsNo, we are not reshoring to the domestic market but looking for alternative trade partners in less tariff-impacted countriesNo, we are not looking into changing our supply chain partners

Respondents indicated:

Plans to Reshore Production

Manufacturing

Services

Reported

May 2025

Reported

Jun 2026

Reported

May 2025

Reported

Jun 2026

Yes, we are actively looking into
shifting production to the U.S.
from abroad

8 %

7 %

8 %

5 %

Yes, we are actively looking into
shifting production domestically,
but our plan will take longer
than six months

27 %

15 %

11 %

7 %

No, we are not reshoring to the
domestic market but looking for
alternative trade partners in less
tariff-impacted countries

31 %

35 %

21 %

14 %

No, we are not looking into
changing our supply chain
partners

34 %

43 %

60 %

74 %

SPECIAL QUESTION TOPIC No. 5: EFFECT OF OIL PRICES

We asked panelists, “What will be the effect of the rising oil prices on your business?”

Answer options:

Large positive effect.Small positive effect.Neutral.Small negative effect.Large negative effect.

Effect of Rising Oil Prices

Manufacturing

Services

Reported Jun 2026

Reported Jun 2026

Large positive effect

7 %

1 %

Small positive effect

7 %

3 %

Neutral

11 %

16 %

Small negative effect

46 %

55 %

Large negative effect

29 %

25 %

SPECIAL QUESTION TOPIC No. 6: RESPONSE TO OIL PRICE SHOCK

We asked panelists, “How do you plan to change your selling prices for products or services in response to the recent oil price shock?”

Answer options:

We plan to pass on all of the cost increases into sales prices.We plan to pass on some of the cost increases into sales prices and to absorb some through reduced margins.We plan to pass on some of the cost increases into sales prices and to pass on the rest to other unaffected products or services we provide.We plan to absorb all of cost increases through reduced margins.Our costs will not be affected by the oil price shock, but we plan to use it as an opportunity to raise prices.Our costs will not be affected by the oil price shock, and we do not plan to change prices because of it.

                                                  Pricing Response to Oil Shock

Manufacturing

Services

Reported Jun 2026

Reported Jun 2026

We plan to pass on all of the
cost increases into sales prices.

27 %

16 %

We plan to pass on some of the
cost increases into sales prices
and to absorb some through
reduced margins.

33 %

15 %

We plan to pass on some of the
cost increases into sales prices
and to pass on the rest to other
unaffected products or services
we provide.

16 %

18 %

We plan to absorb all of cost
increases through reduced
margins.

22 %

23 %

Our costs will not be affected by
the oil price shock, but we plan
to use it as an opportunity to
raise prices.

0 %

1 %

Our costs will not be affected by
the oil price shock, and we do
not plan to change prices
because of it.

2 %

27 %

SPECIAL QUESTION TOPIC No. 7: OVERALL EFFECT OF AI ON EMPLOYMENT

We asked panelists, “What has been the overall effect of AI on employment of your business?”

Answer options:

We are planning some layoffs after the introduction of AI.We are currently not hiring because of AI.We have created new position after the introduction of AI.AI so far hasn’t had noticeable effects on hiring/layoff decisions at our business.

Effect of AI on Employment

Manufacturing

Services

Reported Jun 2026

Reported Jun 2026

We are planning some layoffs after the introduction of
AI.

5 %

9 %

We are currently not hiring because of AI.

13 %

9 %

We have created new position after the introduction of
AI.

6 %

9 %

AI so far hasn’t had noticeable effects on hiring/layoff
decisions at our business.

76 %

73 %

SPECIAL QUESTION TOPIC No. 8:SELECT AI TOOLS BEING USED

We asked panelists, “Which of the following AI tools are you using at your business?”

Answer options*:

We don’t use AI at our business.We use generative AI chatbots.We use AI agents.Other.

AI Tools Used

Manufacturing

Services

Reported Jun 2026

Reported June 2026

We don’t use AI at our business.

18 %

18 %

We use generative AI chatbots.

51 %

54 %

We use AI agents.

45 %

50 %

Other.

8 %

9 %

*Percentages add to more than 100% because respondents were able to select one or more of the following choices:

“We use generative AI chatbots.”
“We use AI agents.”
“Other.”

SUMMARY

Manufacturing

Operating rate is 86.9 percent of normal capacity.Production capacity is expected to increase 9.7 percent in 2026.Capital expenditures are expected to increase 4.9 percent in 2026.Prices paid increased 11.9 percent through June 2026.Prices of raw materials are expected to increase a total of 14.1 percent for all of 2026, indicating an expected increase of 2.2 percentage points for the rest of the year.Manufacturing employment is expected to increase 1.4 percent in 2026.Manufacturing revenues are expected to increase 8.4 percent in 2026.The manufacturing sector is expected to grow in 2026.

Services

Operating rate is 91.3 percent of normal capacity.Production capacity is expected to increase 7.1 percent in 2026.Capital expenditures are expected to increase 6.4 percent in 2026.Prices paid increased 7.7 percent through June 2026.Prices of raw materials are expected to increase a total of 8.9 percent for all of 2026, indicating expectations of continuing inflation.Services employment is expected to increase 0.9 percentage point in 2026.Services revenues are expected to increase 8.6 percent in 2026.The services sector is projected to grow in 2026.

About This Report
In addition to the forecast, the Manufacturing ISM® PMI® Report is issued monthly on the first business day of each month and is considered by many economists to be the most reliable near-term economic barometer available. It is reviewed regularly by top government agencies and economic business leaders. The report, compiled from responses to questions asked of purchasing and supply executives across the country, tracks industrial production, new orders, inventories, supplier deliveries, employment, buying policies and prices. Manufacturing Business Survey panelists are divided into the following NAICS code categories: Food, Beverage & Tobacco Products; Textile Mills; Apparel, Leather & Allied Products; Wood Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Chemical Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Furniture & Related Products; and Miscellaneous Manufacturing (including products such as Medical Equipment & Supplies, Jewelry, Sporting Goods, Toys & Office Supplies).

Covering the services sector, ISM® debuted the Services ISM® PMI® Report in June 1998. The Services ISM® PMI® Report is released on the third business day of each month and is based on data received from purchasing and supply executives from 18 different Services industries across the country. The Services ISM® PMI® Report is diversified by NAICS, based on each industry’s contribution to gross domestic product (GDP). The Services Business Survey panelists are divided into the following NAICS code categories: Agriculture, Forestry, Fishing & Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation & Warehousing; Information; Finance & Insurance; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Educational Services; Health Care & Social Assistance; Arts, Entertainment & Recreation; Accommodation & Food Services; Other Services (including Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grant making; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services); and Public Administration. The report covers business activity, new orders, backlog of orders, new export orders, inventory change, inventory sentiment, imports, prices, employment, and supplier deliveries.

About Institute for Supply Management®
Institute for Supply Management® (ISM®) is the first and leading not-for-profit professional supply management organization worldwide. Its community of more than 50,000 in more than 100 countries manages about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM empowers and leads the profession through the ISM® PMI® Reports, its highly regarded certification and training programs, corporate services, events and assessments. The ISM® PMI® Reports, Manufacturing, and Services are two of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders. For more information, please visit: www.ismworld.org.

ISM PMI Content
The Institute for Supply Management® (“ISM”) PMI® Reports (both Manufacturing and Services) (“ISM PMI”) contains information, text, files, images, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, “Content”) of ISM (“ISM PMI Content”). ISM PMI Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM PMI Content. ISM hereby grants you a limited, revocable, nonsublicensable license to access and display on your individual device the ISM PMI Content (excluding any software code) solely for your personal, non-commercial use. The ISM PMI Content may also contain Content of users and other ISM licensors. Except as provided herein or as explicitly allowed in writing by ISM, you may not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate, publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any ISM PMI Content.

Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including but not limited to tables, charts, data streams, timeseries variables, fonts, icons, link buttons, wallpaper, desktop themes, on-line postcards, montages, mash-ups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM PMI Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered, or given away. You may not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you may not build a business utilizing the Content, whether or not for profit.

You may not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM PMI Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 350 W. Washington St. — Papago Gateway, Suite 301, Tempe, AZ 85288-1495, or by emailing kcahill@ismworld.org, Subject: Content Request.

ISM shall not have any liability, duty, or obligation for or relating to the ISM PMI Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM PMI Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages arising out of the use of the ISM PMI. Manufacturing PMI® and Services PMI® are registered trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc.

The full text version of each monthly report is posted on www.ismrob.org on the first and third business days of every month* after 10:00 a.m. (ET).

The next Manufacturing ISM® PMI® Report featuring the June 2026 data will be released at 10:00 a.m. ET on Wednesday, July 1, 2026.

The next Services ISM® PMI® Report featuring the June 2026 data will be released at 10:00 a.m. ET on Monday, July 6, 2026.

*Unless the New York Stock Exchange is closed.

Contact:

Kristina M. Cahill

PMI® Reports Analyst

ISM® Research & Analytics Manager

Tempe, Arizona

+1 480.455.5910

email: kcahill@ismworld.org

View original content:https://www.prnewswire.com/news-releases/ism-reports-economic-activity-to-expand-through-2026-302803079.html

SOURCE Institute for Supply Management

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Technology

CGTN: China, Myanmar agree to deepen pragmatic cooperation across the board

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BEIJING, June 19, 2026 /PRNewswire/ — Marking a new milestone in bilateral ties, President of Myanmar Min Aung Hlaing completed his first state visit to China from June 15 to 19, opening a new chapter of in-depth, multi-field pragmatic cooperation between the two neighboring countries.

By visiting China Railway Construction Corporation Limited in Beijing and traveling from the Chinese capital to Shanghai aboard the Fuxing high-speed train, the Myanmar president experienced China’s development achievements firsthand, and voiced Myanmar’s strong willingness to further expand practical infrastructure cooperation with China.

Throughout the fruitful visit, the two countries signed a series of cooperation agreements, consolidating their time-honored “pauk-phaw” friendship.

During a meeting with Min Aung Hlaing on Tuesday, Chinese President Xi Jinping said China stands ready to share its development experience with Myanmar and jointly build a China-Myanmar community with a shared future, which is underpinned by political amity and mutual trust, win-win development, security coordination and people-to-people exchanges.

For years, China has remained Myanmar’s largest trading partner, largest source of imports and most important source of investment. Bilateral trade reached $19.4 billion in 2025, up 19.1% year on year.

Boasting prominent structural complementarity, the trade landscape sees China exporting electromechanical equipment and vehicles to Myanmar while importing high-quality agricultural products and mineral resources from Myanmar, forming a mutually beneficial and stable industrial and trade cycle.

As a key landmark of Belt and Road cooperation, the China-Myanmar Economic Corridor has entered a fast-track development phase. A cluster of flagship projects, including the New Yangon City, the Kyaukphyu Special Economic Zone and the China-Myanmar Railway, have gradually taken shape, forming a solid framework for the construction of the corridor.

These major connectivity projects have effectively driven Myanmar’s industrial upgrading, and improved local livelihoods, injecting strong impetus into cross-border economic integration.

During Tuesday’s talks, Xi reiterated that the China-Myanmar Economic Corridor is a flagship project of the Belt and Road cooperation.

The two sides need to steadily advance the construction of major projects on the basis of ensuring safety and security, and support Myanmar in growing its economy and improving livelihoods, he said.

China, Xi added, stands ready to implement more “small and beautiful” assistance programs, and jointly tell the stories of mutually beneficial cooperation between the two countries.

China and Myanmar on Tuesday issued a lengthy joint statement on accelerating the building of a community with a shared future between the two countries to better benefit the people of both countries.

In a demonstration of the depth and breadth of bilateral relations, the two sides signed a number of cooperative documents, covering transport, science and technology, intellectual property rights, human resources development, public health and media.

Bilateral and multilateral law-enforcement cooperation to combat cross-border criminal activities was also highlighted during the visit, with China and Myanmar expressing their support for the establishment of an international alliance against telecom cyber fraud.

Over recent months, through joint law enforcement coordination, China and Myanmar have cracked down the telecom fraud criminal operations in northern Myanmar, effectively upholding peace and stability along the border as well as the safety of lives and property of people of both countries.

During the talks, Xi said the two sides need to continue cracking down on criminal activities including online gambling, telecom fraud and drug trafficking, and fully safeguard the interests and security of the two peoples.

For his part, Min Aung Hlaing said Myanmar stands ready to work closely with China to resolutely combat online gambling and telecom fraud and safeguard security and stability in the border areas.

Qu Jianwen, chief of the Yunnan Province Association for Southeast Asian Studies, wrote that the China visit by Myanmar’s president vividly demonstrates the sound and growing momentum of bilateral cooperation.

https://news.cgtn.com/news/2026-06-19/China-Myanmar-agree-to-deepen-pragmatic-cooperation-across-the-board-1O64ed6YbYI/p.html

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SOURCE CGTN

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Protecting and Innovating Critical Infrastructure Through New Security Landscapes

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The following article is authored by Skyla Loomis, General Manager, IBM Z Software

ARMONK, N.Y., June 19, 2026 /PRNewswire/ — Over the last few years, we’ve seen seismic shift in enterprise computing. From the rise of machine learning to today’s agentic AI, computing systems have advanced beyond tools into active assistants, requiring new levels of secure, high-powered and efficient infrastructure.

One thing hasn’t changed though the decades. IBM Z has been the most resilient server platform in the market with its average yearly downtime as less than a third of a second.1

This reputation is because as technology has evolved, so has IBM Z. Today, clients have more workloads that may be considered highly sensitive and mission-critical given new sovereignty and regulation requirements, and continue to turn to IBM Z for their core applications.

IBM is continuing to innovate mainframes to address and combat the technological challenges of the future. As part of this mission, today we’re announcing the general availability of three new Z software tools designed to not only meet clients where they are, but to start addressing future challenges such as frontier model attacks. These complement our recent developments with Project Glasswing and our commitment to open-source security with Project Lightwell.

As a leading provider in hybrid cloud, AI and consulting expertise, IBM has developed decades of IBM Z Software to help clients protect themselves for what’s ahead. In cybersecurity, IBM developed IBM Concert for Z last year for enterprises to discover and address vulnerabilities across the entire landscape because we saw the siloed nature of infrastructure and application teams across an organization. Hybrid infrastructure is the reality and we are passionate about giving teams world-class software built to innovate and defend the full stack for the future – IBM Z included.

The following tools are now generally available:

IBM zSecure Detection – Evolving threats mean enterprises need better ways of monitoring and responding. IBM zSecure Detection monitors IBM Z activity for things like ransomware and suspicious behavior across the system. Enterprises now have a comprehensive tool to detect, investigate and respond on z/OS to strengthen their security posture.IBM zSecure Secret Manager – Certificate management can be a burden for infrastructure and security teams. As the lifespan of these certificates shortens, teams need a secure, continuous monitoring for z/OS environments in IBM Z and LinuxONE. Powered by IBM Vault Self-Managed for Z, IBM zSecure Secret Manager gives z/OS teams an automated and cohesive way of addressing certificate management with shortened certificate lifecycle deadlines and fragmented management strategies.IBM Z Database Assistant – IBM Z stands apart with its data integrity, but AI has shifted the need from access to intelligence. Now database teams can use agentic AI to optimize DBA performance, accelerate tasks and help ensure your trusted data is continuously available. IBM Z Database Assistant is proactive, autonomous and intelligent, designed for the future of data operations.

With security threats and new ways of working on IBM Z, we’re equipping the teams that work tirelessly on critical infrastructure to build and operate for the future. The bar for resiliency and 99.999999% uptime1remains the same for our clients, but IBM Z Software will continue to innovate so enterprises can manage and protect their core infrastructure and workloads.

Learn more about the latest Z Software solutions:

IBM zSecure DetectionIBM zSecure Secret ManagerIBM Z Database Assistant

1. ITIC 2025 Global Server Hardware, Server OS Reliability Report, February 2026

About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s long-standing commitment to trust, transparency, responsibility, inclusivity, and service.  Visit www.ibm.com for more information.

Media contact:

Marshall Hampson
IBM
marshall.hampson@ibm.com

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SOURCE IBM

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Technology

KCS Opens KuCoin’s Ninth Anniversary Chapter, Advancing Token Utility as a Value Participation Layer

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The upgraded KCS experience brings trading efficiency, rewards, payment benefits and ecosystem privileges into one unified user journey.

PROVIDENCIALES, Turks and Caicos Islands, June 19, 2026 /PRNewswire/ — KuCoin, a leading global crypto platform built on trust, today announced the upgraded KCS experience, marking the opening chapter of KuCoin’s ninth anniversary journey and a new step in the evolution of KCS from a platform utility token into a broader value participation layer across the KuCoin ecosystem.

Nine years ago, KCS was introduced to reward and empower KuCoin’s earliest users. Since then, both KuCoin and the broader digital asset industry have undergone profound transformation. What began as a token primarily associated with trading benefits has gradually evolved into a broader ecosystem asset connecting users with rewards, payments,  loyalty privileges and community participation.

As digital asset ecosystems mature,  the role of exchange-native tokens is changing as well. Exchange-native tokens are no longer defined only by isolated benefits or short-term incentives. They are increasingly becoming participation layers that connect users with value across an entire ecosystem. The upgraded KCS experience addresses this shift by bringing fragmented KCS-related benefits into a more connected and actionable journey. Through the upgraded experience, users can better discover and activate KCS benefits across trading fee reductions, rewards, loyalty privileges, KuCard-related incentives and broader ecosystem programs through one clearer pathway. This reflects KuCoin’s trust-first approach in practice: making platform value easier to understand, more transparent to access and more consistent across touchpoints.

“KCS has grown alongside our users and our ecosystem for nearly nine years,” said BC Wong, CEO of KuCoin. “As the industry evolves, we believe the next generation of exchange-native tokens will be defined not simply by utility, but by how effectively they connect users with ecosystem value. Our vision is for KCS to serve as a participation layer that brings together trading, rewards, payments, and future ecosystem experiences into one cohesive journey.”

KCS, the native token of the KuCoin ecosystem, has long served as a bridge between users and KuCoin’s platform value. With this upgrade, KCS’s long-term vision of moving blockchain “from geeks to mass adoption” and building a blockchain-based value self-circulation ecosystem is being translated into a clearer and more practical user experience, making KCS easier to understand, activate and use across KuCoin.

The milestone arrives at a symbolic moment for KuCoin, serving as the opening chapter of its ninth-anniversary journey. As KuCoin prepares to celebrate nine years of growth, the evolution of KCS reflects the broader transformation of KuCoin itself — from a crypto exchange into a global digital asset ecosystem spanning trading, payments, Web3 infrastructure, institutional services and emerging technologies such as AI. In this next chapter, KCS is designed to become a clearer user-facing gateway to KuCoin’s expanding ecosystem, helping users better discover, understand and participate in the value created across the platform. As KuCoin enters its ninth anniversary, the upgraded KCS experience sets the tone for a broader vision: making ecosystem value more accessible, connected and meaningful for users worldwide.

About KuCoin

Founded in 2017, KuCoin is a leading global crypto platform built on trust and security, serving over 40 million users across 200+ countries and regions. Known for its reliability and user-first approach, the platform combines advanced technology, deep liquidity, and strong security safeguards to deliver a seamless trading experience. KuCoin provides access to 1,500+ digital assets through a broad product suite and remains committed to building transparent, compliant, and user-centric digital asset infrastructure for the future of finance, backed by SOC 2 Type II, ISO/IEC 27001:2022, and ISO/IEC 27701:2019 Certifications. In recent years, we have built a strong global compliance foundation, marked by key milestones including AUSTRAC registration in Australia, a MiCA license in Europe, and regulatory progress in other markets.

Learn more at www.kucoin.com.

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SOURCE KuCoin

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