US economy continued running hot in June, IHS Markit says

By Alexander Bueso

Date: Wednesday 23 Jun 2021

US economy continued running hot in June,  IHS Markit says

(Sharecast News) - America's economy continued to expand at a very brisk pace in June, although inflation continued to be a potential risk, the results of two surveys revealed.

IHS Markit's services business activity index slipped from May's reading of 70.4 to 64.8 (consensus: 69.9).

On the other hand, the same survey compiler's manufacturing sector purchasing managers' index accelerated unexpectedly, rising from 62.1 to 62.6 (consensus: 61.8).

According to IHS Markit's chief business economist, both surveys continued to point to further "impressive growth" in the US, although price pressures needed monitoring.

"While both output growth and inflows of new orders have come off their peaks in both manufacturing and services, this is as much due to capacity constraints limiting firms' abilities to cope with demand rather than any cooling of the economy," IHS Markit said.

"[...] While the second quarter will likely represent a peaking in the pace of economic growth, a concomitant peaking of inflation is far less assured."

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