After steadily advancing from 2020 through early 2022, the Fed's gauge of manufacturing output fell in June, down 0.3 percent from a year ago.

As inflation cools in the United States, it continues rising in Europe.

Economists still expect to see a recession but are pushing back projections of the downturn's start date.

S&P Global purchasing managers index indicates the fastest rate of growth in 10 months.

In February, housing costs helped deliver a larger-than-forecast 0.5% gain in so-called core inflation, which excludes food and energy

Improving supply chains and firmer demand seem to be offering some relief for a still-challenged manufacturing sector.

Still, manufacturing has moderated and risks further loss of momentum as businesses contend with an inventory overhang and an easing in domestic demand for goods.

"Overall, inventories in the economy are still unusually low, even after a few quarters of substantial builds. That reflects how lean inventories were after massive liquidation during the pandemic."