- Highest level in 26 months
- The previous one was 54.8
- Manufacturing 51.7 vs. 51.0 expected
- Previous manufacturing was 51.3
- Composite 54.6 vs 54.5
- Sale prices are “at one of their lowest levels in the past four years” and their lowest level in five months
- “Business confidence improves for next year, particularly in the services sector, as well as renewed pressure on operational capacity due to higher demand.”
- The outlook for services reached its highest level in five months
- Payrolls in the service sector rose the most in five months, helping to reverse some of the declines the sector saw over the previous two months
The services figure is higher than economists' highest estimates and indicates a strong and resilient economy. However, pricing numbers are also moving in the right direction and this may limit the hardline reaction.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said:
“Early PMI data point to the fastest economic expansion in more than two years in June, signaling an encouragingly strong end to the second quarter while at the same time inflation pressures are subsiding. The PMI is running at a level that is broadly consistent with the economy growing at an annual rate of less than Just over 2.5%, this improvement has been broad-based, with higher demand continuing to creep into the economy, which so far this year has enjoyed its best spell of growth in two years. The survey also brings welcome news in terms of job gains, with renewed appetite for hiring driven by improved Business optimism about the outlook again after rising in May, reaching one of the lowest levels seen in the past four years, and historical comparisons suggest that the recent decline brings the survey's measure of prices in line with the Fed's 2% inflation target.
the prices:
This article was written by Adam Paton at www.forexlive.com.