US manufacturing expanded for a sixth consecutive month in June, though the pace slowed as a war-driven surge in input costs eased. The Institute for Supply Management's gauge slipped 0.7 points to 53.3, holding near a four-year high and marking the sector's longest growth streak since 2022. Readings above 50 signal expansion.

The prices-paid index dropped sharply, reflecting relief from earlier commodity spikes tied to geopolitical conflict. That combination — steady output with cooling costs — offers the Federal Reserve a clearer path on policy. New orders and production sub-indexes remained in growth territory, though employment softened slightly, hinting at cautious hiring plans.

The report arrives as investors weigh whether the economy can sustain momentum without reigniting inflation. For now, the data supports a soft-landing narrative, but the margin for error narrows if global supply chains face fresh disruption. Markets will watch next month's release for signs the expansion can maintain its current trajectory.