(Finance) – Manufacturing activity in the United States continues to expand, but decelerates in July. The flash estimate on the PMI index prepared by S&P Global indicates a level of 52.3 points, down from 52.7 points in June and higher than analysts’ expectations (52 points). The indicator is confirmed well above the key threshold of 50 points, which acts as a watershed between expansion and contraction.
Thetertiary sector index. The flash estimate, on the services PMI, published by S&P Global, indicates a value of 47 points, again in July, compared to 52.7 in June and against 52.6 in the consensus. The index continued its downward trajectory observed since the recent high in March and signaled the sharpest decline in output since May 2020.
The Composite PMI it thus stands at 47.5 points from the previous 52.3. The rate of decline was the sharpest since the early stages of the pandemic in May 2020, as both manufacturers and service providers reported weak demand conditions.
“Preliminary PMI data for July indicate a worrying deterioration in the economy,” commented Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. production is declining at a pace not seen since 2009 during the global financial crisis, with survey data indicating GDP falling at an annualized rate of around 1%. “
“The manufacturing sector has stalled and the service sector recovery from the pandemic has reversedas the tailwind of pent-up demand has been overtaken by rising cost of living, rising interest rates and growing gloomy economic outlook, “he added.