The United States private sector continued to record a substantial expansion in June, albeit slower than the previous month.
- The IHS Markit Flash U.S. Composite PMI Output Index stood at 63.9 in June, higher than the 50.0 threshold that separates expansion and contraction. The index was at 68.7 in May.
- Slower activity growth was seen in both manufacturing and service sectors, as producers were hit by supply delays and hiring difficulties during the month.
- New business growth remained high, even after falling to a three-month low. Firms reported new export orders after COVID-19 restrictions were eased.
- The Flash U.S. Manufacturing PMI climbed to a series high of 62.6, while both the Services Business Activity Index and the Manufacturing Output Index slipped in June.
IHS Markit Chief Business Economist Chris Williamson believes the second quarter will likely represent a peak in economic growth, but a peak for inflation is not assured.
Source: IHS Markit