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21/06/24
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Flash U.S. Manufacturing PMI Hits Highest Level in Three Months
Stocks across the United States were trading largely flat on June 21 but were on their way to ending the week with gains as S&P Global’s data showed that Flash US Manufacturing PMI rose to its highest level in three months.
Flash U.S. manufacturing PMI came in at 51.7 for June, relative to 51.3 last month, representing the third-highest recorded in 21 months and suggesting that business conditions within the goods-producing sector improved for a second consecutive month. This is also the fifth time it has improved in six months.
The Flash U.S. PMI Composite Output Index rose from 54.5 in May to 54.6 in June, representing its highest since April 2022, having risen for seventeen straight months. “June’s expansion was led by the service sector, where business activity grew at a rate not seen for 26 months. Services activity has now risen for 17 straight months,” reads the report. Likewise, manufacturing output expanded for a fifth straight month in June.
Separate data showed a fall in sales of existing homes in the United States for a third consecutive month in May, with contract closings falling 0.7% to a 4.11 million annualized rate.
Some FOMC members said there needs to be caution regarding potential rate cuts in the near term, as there should be evidence that inflation is coming down prior to the Fed agreeing to ease monetary policy.
On June 20, President of the Federal Reserve Bank of Richmond Thomas Barkin stressed the need to have more clarity on the path of inflation prior to considering cutting interest rates. “My personal view is let’s get more conviction before moving,” said Bakin on Thursday.
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