The Institute for Supply Management's (ISM) June Manufacturing PMI report showed a better-than-expected reading of 49.0, but the sector remains in contraction territory for the first time in nearly a decade. ISM's Susan Spence attributes the weakness to ongoing trade policy uncertainty, citing executives expressing concern. Despite a slight uptick in production, she notes that new orders and backlogs continue to contract. Spence emphasizes that companies need clarity around tariffs and trade policy to make informed decisions to invest in their businesses, rather than relying on short-term fixes.