US sees in June weakest selling prices gain so far this year: S&P Global

By Ovunc Kutlu

ISTANBUL (AA) - The US saw in June the weakest increase in selling prices so far this year, global data provider S&P Global said Monday in a report.

The manufacturing sector in the world's biggest economy remained in growth territory at the end of the second quarter of the year, said the report. "Although client demand remained muted and business confidence hit a 19-month low, new orders rose for a second month running."

The US Manufacturing Purchasing Managers’ Index (PMI), which measures the activity level of purchasing managers in the manufacturing sector, rose in June to a three-month high of 51.6, from 51.3 in May, according to final figures.

The initial figure announced 10 days ago stood at 51.7, while a reading above 50 indicates expansion and below 50 shows contraction.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said the PMI survey shows US manufacturers were struggling to achieve strong production growth in June, "hamstrung by weak demand from domestic and export markets alike."

"Factories have been hit over the past two years by demand switching post-pandemic from goods to services, while at the same time household and business spending power has been diminished by higher prices and concerns over higher-for-longer interest rates," he said.

"These headwinds persisted into June, accompanied by heightened uncertainty about the economic outlook as the presidential election draws closer," he added.