finance
US Manufacturing PMI Hits 49-Month High in June While Euro Area Improves
Preliminary June data showed US manufacturing and services PMI both rising above forecasts. Euro-area composite PMI increased but stayed below 50 while the UK economy contracted for a second month.
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US manufacturing activity reached a 49-month high in June while services activity hit a four-month high, ZeroHedge reported. The manufacturing PMI climbed to 55.7 from 55.1 in May, exceeding the 54.6 forecast, and the services PMI rose to 51.3 from 50.3, beating the 51.1 estimate.
ZeroHedge reported that both sectors expanded and the composite reading pointed to output levels consistent with roughly 1 percent annualized growth in the second quarter.
Supply delays grew more widespread during the month. Input cost inflation remained among the highest rates of the past four years yet showed signs of easing, partly because of lower energy prices. Factory employment fell at the fastest pace since 2009 outside the pandemic period.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said brighter news from the Middle East had restored some business confidence. He added that the overall growth signal remained sluggish compared with earlier in the year. In the euro area the composite PMI rose to 49.5 from 48.5, ZeroHedge reported, with services improving and manufacturing declining.
The reading stayed below the 50 threshold that separates expansion from contraction. The UK composite PMI fell to a 14-month low, ZeroHedge reported, as both services and manufacturing declined. The economy contracted for a second consecutive month through June.
