Thursday, June 1, 2023

Private sector activity picks up in the US and slows in the euro area

Private sector economic activity in the United States and the euro zone posted odd numbers in May, as the former rose to its highest level in 13 months, while the latter slowed slightly.

In the United States, S&P Global reported that its composite PMI, which tracks the manufacturing and services sectors, rose to a reading of 54.5 this month, the highest since April 2022, and up from 53.4 points in April. remained till the last reading.

Moreover, this is the fourth consecutive month that the PMI has remained above the 50 mark, indicating growth.

The survey indicator on new orders received by private companies increased to 54.3 points this month, the highest number since May 2022.

The services sector boosted growth, keeping service inflation high.

Chris Williamson said, “While strong demand and deteriorating supply raised manufacturing prices during the pandemic, it is now the turn of the services sector to raise prices amid resurgent demand and an inability to cope. For.” Chief Economist at S&P Global.

On the other hand, according to the S&P Global Index, private sector economic activity declined in the euro area due to a decline in industrial production.

According to the consultant, the PMI index fell to 53.3 points from 54.4 points in May.

Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said eurozone GDP is expected to grow in the second quarter of 2023, driven by the services sector.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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