June preliminary PMI data shows services growth accelerating while manufacturing contracts more than forecast, signaling mixed economic momentum.
US flash services PMI climbed to 51.3 in June from 51.0 in May, exceeding expectations and marking the sixth consecutive month of expansion. The manufacturing PMI, however, fell to 54.8, below the 55.3 forecast and the prior month’s reading, indicating a sharper slowdown in factory activity.
The composite PMI, combining both sectors, dipped to 51.7 from 53.4 in May, reflecting weaker overall private-sector growth. The services index is based on business activity, while manufacturing incorporates new orders, output, employment, delivery times, and inventory levels. Both surveys provide early insights into economic trends, with final data released next month.
Markets watch flash PMIs closely as they offer one of the earliest reads on monthly economic performance. A reading above 50 signals expansion, while below 50 indicates contraction. The divergence between services and manufacturing may influence expectations for Federal Reserve policy and sector-specific outlooks.