Preliminary
data published by S&P Global on Monday revealed that expansion in the U.S.
private sector business activity slowed
marginally in early June.
According to
the report, S&P Global flash U.S. Composite Purchasing Manager's Index
(PMI) Output Index came in at 52.8 early this month, slightly down from 53.0 in
May. The latest reading signalled a marginal deceleration in activity
growth from May, although it was the third strongest so far this year.
A reading above
50 signals an expansion in activity, while a reading below this level signals a
shrinkage.
S&P Global
flash services PMI checked in at 53.1 in June, down from 53.7 in the previous
month. This pointed to somewhat cooler compared to May, but still solid, growth
in activity across the services sector.
Economists had expected
the services PMI to slip to 52.9. Meanwhile, S&P
Global flash manufacturing PMI remained unchanged at 52.0 in June. The latest print indicated that activity in the goods-producing sector expanded
at a pace, matching May’s 15-month high. Economists had anticipated the manufacturing PMI to drop to 51.0.
S&P Global
noted that businesses’ expansion in June reflected a further rise in new orders,
which have now risen continually for 14 months, though the rise in orders
dipped slightly this month, amid falling exports of both goods and services. Employment
rose at a rate not seen for just over a year. Price pressures rose sharply
across both manufacturing and service sectors, with the former reporting an
especially steep increase, commonly linked to tariffs.