US services activity posts weakest gain since January

June saw signs of weakening economy with demand falling in manufacturing, service sectors, says economist

Ovunc Kutlu   | 06.07.2022
US services activity posts weakest gain since January FILE PHOTO


Activity in the American services sector posted its weakest gain since January, according to a report released Wednesday by US-based financial services company S&P Global.

Services purchasing managers' index (PMI) of Business Activity, which covers transport, communication, financial intermediaries, computing, hotels and restaurants, fell 0.7 points to 52.7 in June.

Although the index managed to remain above the neutral level of 50.0, "the index dropped for the third month running and was down from 53.4 in May, pointing to the weakest rise in activity since January," S&P Global said in a statement.

A reading above 50 indicates expansion in the sector, while below 50 represents contraction.

"June saw signs of a broad-based weakening of the economy with demand now falling in both the manufacturing and service sectors," Chris Williamson, chief business economist at S&P Global Market Intelligence, said in the statement.

S&P Global noted that business confidence regarding the year ahead outlook dropped to a 21-month low.

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