US factory and services activity rises unexpectedly in June, PMIs show

21st Jun 2024 16:08

(Sharecast News) - Economic activity in the US picked up unexpectedly over the first half of June, the results of two surveys showed.

S&P Global's Composite Output Index edged up from a reading of 54.5 for May to 54.6 in June.

The Purchasing Managers' Index for services on the other hand, which measures more than just levels of production, rose from 54.8 to 55.1 (consensus: 53.7).

A separate for manufacturing meanwhile improved from 51.3 to 51.7 (consensus: 51.0).

"The early PMI data signal the fastest economic expansion for over two years in June, hinting at an encouragingly robust end to the second quarter while at the same time inflation pressures have cooled," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

"[...] "Selling price inflation has meanwhile cooled again after ticking higher in May, down to one of the lowest levels seen over the past four years. Historical comparisons indicate that the latest decline brings the survey's price gauge into line with the Fed's 2% inflation target."

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