US economic activity slows despite fastest job growth

US economic activity slowed in June, despite the fastest pace of job creation in a year and continued price increases.

According to preliminary data from a survey conducted by S&P Global, the composite purchasing managers’ index (PMI) fell to 52.8 points in June, from 53 in May.

Although this marked a two-month low, the index remained above the 50-point threshold that separates expansion from contraction, indicating continued—albeit slower—growth.

The slowdown was driven by a dip in the services sector PMI, which declined to 53.1 in June versus 53.7 points in May, reaching a two-month low.

Meanwhile, the manufacturing PMI held steady at 52 points, supported by a rise in the output subindex to 51.5—the highest reading in four months.

While prices continued to rise, particularly in the manufacturing sector, businesses struggled to keep up with growing demand, prompting increased hiring at the fastest rate since June 2023.