United States: Composite PMI falls in June
The S&P Global Flash Composite Purchasing Managers’ Index (PMI) fell to 53.0 in June from May’s 54.3. As such, the index remained above the 50.0 no-change mark, pointing to a continued, albeit moderating, improvement in private sector operating conditions from the previous month.
The Manufacturing PMI stood at 46.3 in June, down from May’s 48.4. The services PMI activity index fell to 54.1 in June (May: 54.9). The disparity between the manufacturing and services sectors was stark: New orders, output and exports fell for manufacturing firms and rose among services providers. Across the private sector as a whole, jobs growth was the slowest since January, while selling price inflation for goods and services hit a 32-month low.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said:
“Growth remains dependent on service sector spending, […] with manufacturing slipping back into decline after three months of growth. While improving supply conditions had helped boost manufacturing production in prior months, an increasingly severe downturn in new orders mean factories are running out of work. […] it is encouraging to see the overall rate of selling price inflation for goods and services drop to the lowest since late 2020 in a sign that the Fed is winning its fight against inflation.”