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- U.S. manufacturing activity improves slightly more than initially estimated in June - HIS Markit
U.S. manufacturing activity improves slightly more than initially estimated in June - HIS Markit
The latest
report by IHS Markit revealed on Wednesday the seasonally adjusted IHS Markit
final U.S. Manufacturing Purchasing Managers’ Index (PMI) stood at 49.8 in June,
up from May’s reading of 39.8 and slightly higher than the earlier released “flash”
reading of 49.6. The reading signaled only a fractional deterioration in U.S.
manufacturing conditions as goods producers and their customers began to reopen
amid looser restrictions following the outbreak of COVID-19.
Economists had
forecast the index to stay unrevised at 49.6.
According to
the report, the downward trend in production eased markedly in June as new
orders stabilized amid reports of relative improvement in demand conditions. At
the same time, employment across the manufacturing sector dropped for the
fourth month running in June. However, the overall loss of jobs was
considerably weaker than those seen in the prior two months. Optimism about the year ahead meanwhile
revived considerably amid hopes of a sustained pick-up in client demand and an
end to the pandemic.
Chris
Williamson, Chief Business Economist at IHS Markit noted: “While the PMI
currently points to a strong v-shaped recovery, concerns have risen that
momentum could be lost if rising numbers of virus infections lead to renewed
restrictions and cause demand to weaken again.”
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