- 26-month high
- Prior was 54.8
- Manufacturing 51.7 vs 51.0 expected
- Prior manufacturing was 51.3
- Composite 54.6 vs 54.5
- Selling prices 'at one of the lowest levels of the past four years' and a five-month low
- "Improved business confidence for the year ahead, notably in the service sector, as well as renewed pressure on operating capacity from rising demand"
- Services future prospects hit a five-month high
- Service sector payrolls rose to the greatest extent for five months, helping reverse some of the declines seen in the sector over the prior two months
The services number is above the highest economist estimate and points to an economy that's strong and resilient. However the pricing numbers are also moving in the right direction and that could limit the hawkish reaction.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:
"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. The PMI is running at a level broadly consistent with the economy growing at an annualized rate of just under 2.5%. The upturn is broad-based, as rising demand continues to filter through the economy. Although led by the service sector, reflecting strong domestic spending, the expansion is being supported by an ongoing recovery in manufacturing, which so far this year is enjoying its best growth spell for two years. The survey also brings welcome news in terms of job gains, with a renewed appetite to hire being driven by improved business optimism about the outlook. 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.”
Prices:
