S&P Global has revealed that the composite Purchasing Managers’ Index (PMI) for the United States slowed in June to 53 from 54.3 recorded in May, therefore marking its lowest level since March.
A figure above 50 means that US economic activity is expanding. The S&P indicated June marked the fifth month its value was above 50, although the manufacturing industry suffered a new contraction in output, while services improved, but at a slower pace.
More new orders were recorded, though services are responsible for the trend, as the industry posted its biggest decline since December 2022 due to “weak consumer confidence” and the fact that customers have accumulated ‘stock’ ‘ is decreasing. Weak demand in the industry has been supplied by ‘pulling up’ unsatisfied orders.
Similarly, industrial orders for exports continued to decline in June for the thirteenth consecutive month. Orders from the overseas service sector “resurged significantly.”
On the other hand, it “increased sharply” for both goods and services in June, given the weakening of inflationary pressures in May. As such, services led this rise in prices due to a rise in the wage bill, but industry saw input costs fall at a pace not seen since May 2020 due to cheaper raw materials. Despite this, US companies increased their prices at the slowest pace since October 2020.
Thereafter, employment continued to increase in June due to the closure of long-standing vacancies and a higher number of orders. However, this advance was the most limited since January as low demand combined with scarce availability of candidates.