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US Services Sector Unexpectedly Plunges In June As Manufacturing Survey Hits Record High

Despite the serial disappointment in hard economic data, ‘soft’ survey data has continued to soar in 2021 but analysts expected today’s Markit PMIs to retrace some of those gains. However, reality was notably different with Manufacturing jumping more than expected as Services plunged

  • Markit US Manufacturing rose to 62.6 (from 62.1) beating expectations of 61.5.
  • Markit US Services plunged to 64.8 (from 70.4) hugely missing expectations of 70.0

That is the lowest reading since March for Services and highest reading ever for Manufacturing.

Employment issues remained prevalent during June, as numerous panellists mentioned difficulties finding suitably trained candidates for current vacancies.

Price pressures also remained elevated in June. The rate of input price inflation softened slightly but was the second-fastest on record. Manufacturers continued to note rapid increases in raw material and fuel costs, whilst service providers highlighted higher wage bills to attract workers plus greater transportation fees and fuel costs.

US continues to be the world’s “strongest” economy based on these soft surveys, even as the US Composite PMI dropped to 63.9…