US factory activity shrinks in June, but services 'solid', PMIs show
By Alexander Bueso
Date: Friday 23 Jun 2023
(Sharecast News) - Activity at US factories and in the services sector slowed in June, although it remained solid in the latter, the results of a survey showed.
S&P Global's composite output index for both sectors fell from a reading of 54.3 for May to 53.0 in June.
According to the survey compiler, manufacturers again saw production shrink, but in services output remained "solid", although it slowed as well.
Jobs growth meanwhile sank to its slowest pace since January, even as higher wages added to businesses' costs.
Selling price inflation however hit a 32-month low.
A separate Purchasing Managers' Index for services alone slipped from 54.9 to 54.1 (consensus: 54.0).
In parallel, a PMI for factory activity dropped to 46.3 from 48.4 (consensus: 48.5).
"The overall rate of expansion of business activity in the US remained robust in June, consistent with GDP rising at a rate of 1.7% to put second quarter growth in the region of 2%," said Chris Williamson, chief business economist at S&P Global, said.
"Growth remains dependent on service sector spending, however, with manufacturing slipping back into decline after three months of growth. While improving supply conditions had helped boost manufacturing production in prior months, an increasingly severe downturn in new orders mean factories are running out of work."
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