U.S. Manufacturing Activity Slows in June Amid Soft Demand, Tight Credit
LONDON (Dispatches) - The U.S. manufacturing sector has lost some of its momentum at the beginning of this month, coinciding with a slowdown in the services sector, as insufficient growth in disposable household incomes and elevated borrowing costs weighed on consumer demand.
International trade woes played a role as well, but economists believe higher wages could solve part of the problem.
According to a new report from London-based information provider IHS Markit, U.S. factory output slowed in June, despite the broader economy maintaining its modest pace of expansion.
Flash Purchasing Managers' Index (PMI) for the U.S. manufacturing sector declined to 50.1 points in early June, IHS Markit said – its lowest since September 2009. Readings above 50 indicate expansion, which may suggest the American industrial sector could be balancing on the edge of contraction.
Overall, Markit's flash Composite Output Index for the US economy dropped to 50.6 points this month from 50.9 in May, hitting a 40-month low.
International trade woes played a role as well, but economists believe higher wages could solve part of the problem.
According to a new report from London-based information provider IHS Markit, U.S. factory output slowed in June, despite the broader economy maintaining its modest pace of expansion.
Flash Purchasing Managers' Index (PMI) for the U.S. manufacturing sector declined to 50.1 points in early June, IHS Markit said – its lowest since September 2009. Readings above 50 indicate expansion, which may suggest the American industrial sector could be balancing on the edge of contraction.
Overall, Markit's flash Composite Output Index for the US economy dropped to 50.6 points this month from 50.9 in May, hitting a 40-month low.