This means that the economy is still strong, an index above 50 indicates growth, but that the outlook looks a little worse, according to purchasing managers. However, the index is well above the historical average of 56.4.
“The June outcome shows a continued strong economic cycle, even though the downside risks have increased with increasingly gloomy households and rising interest rates, which may be an increased challenge for service companies in the second half of the year,” writes Jörgen Kennemar, head of purchasing manager index analysis.
All sub-indices included in the purchasing managers’ index fell, but the part that accounts for delivery times accounted for the largest decline.
However, all sub-indices are above the historical average.