Preliminary data published by S&P Global on Friday revealed that U.S. private sector business activity expanded strongly in early June, reflecting quicker growth in activity both in the services sector and manufacturing.
According to the report, S&P Global flash U.S. Composite Purchasing Manager's Index (PMI) Output Index came in at 54.6 early this month, up from 54.5 in April. The latest reading pointed to the fastest increase in business activity since April 2022 (56.0).
A reading above 50 signals an expansion in activity, while a reading below this level signals a contraction.
S&P Global flash manufacturing PMI edged up to 51.7 in June from 51.3 in the previous month. The latest print suggested an improvement in business conditions within the goods-producing sector for a second straight month. Economists had forecast the manufacturing PMI to slip to 51.0.
Meanwhile, S&P Global flash services PMI checked in at 55.1 in June, up from 54.8 in May. The latest reading indicated the strongest gain in activity across the sector since April 2022 (55.6). Economists had expected the services PMI to drop to 53.7.