Ankara: The US manufacturing sector: expanded more than market forecasts in June, according to data by S and P Global on Tuesday. The S and P's Purchasing Managers' Index (PMI) rose to 52.9 points, up 0.9 points from May's 52. This was the highest reading since May 2022.

According to Anadolu Agency, markets had anticipated the figure to remain at 52 points. A reading above 50 indicates growth, while below that figure signals contraction. S and P Global noted in a statement that output increased for the first time since February, with new orders rising for the sixth consecutive month due to improved domestic and international demand.

Despite the expansion, tariffs remained a significant concern in June, influencing pricing and purchasing decisions. Manufacturers increased their input purchasing activity to the highest level since April 2022, partially to build up stocks amid ongoing trade and price volatility.

Input costs rose sharply, with inflation reaching its highest level in nearly three years. A similar trend was observed for output charges, which rose to the greatest extent since September 2022. Manufacturers recorded a first rise in production for four months, marking the second-steepest growth since March 2024, surpassed only by February's near three-year record.

Firms often attributed the rise in production to higher volumes of new orders, which continued to increase throughout the year. Both domestic and international demand saw growth in June, driven by positive marketing campaigns and new export orders.

Tariffs also affected purchasing and prices during June. Some manufacturers indicated that tariff uncertainty prompted them to build up inventory and purchase more inputs.