The American session market has seen mixed readings in the manufacturing and services PMI data published for June. U.S. manufacturing activity soared to record highs in June but producers still had difficulty obtaining raw materials and skilled workers. This drives up prices for consumers and businesses.
IHS data firm Markit reports, U.S. manufacturing PMI. increased to a reading of 62.6 this month. The reading was the highest since October 2009 and was followed by a final reading of 62.1 in May.
The survey was conducted between June 10 and June 22. Economists surveyed by Reuters had predicted the index to decline to 61.5. Readings above 50 indicate growth in manufacturing, which accounts for 11.9% of the U.S. economy.
The surge in manufacturing boosted economists ’expectations to see double -digit growth in the second quarter. Federal Reserve Chairman Jerome Powell told lawmakers on Tuesday that inflation has “increased especially in recent months. He cited this due to lack of supply and spike in spending.
The survey found that the cost of raw materials rose to the highest level causing companies to raise their selling prices.
On the other hand, the IHS Markit lightning services sector PMI fell to 64.8 from a reading of 70.4 in May, it is still the second highest reading since data collection began in October 2009.
Businesses in the services sector, which account for more than two -thirds of U.S. economic activity, are worried about rising inflation and an inability to find a qualified workforce and people willing to work.
The US dollar index, which measures the US dollar against major currencies, declined following the report's release to the trading level of 91.558 with a fall of 0.21%
