Strong Business Activity Growth Rounds Off Best Quarter in PMI Survey History

IHS Markit News Release (07/06/21)

June data indicated a further marked upturn in business activity across the U.S. service sector, supported by a substantial rise in client demand, according to IHS Markit. Business confidence in the outlook also improved to the second-highest in seven years. Rates of output and new order growth eased from May’s record highs, however, and capacity constraints meant backlogs of work grew at the quickest rate for 10 months. Although firms continued to hire new workers, challenges finding suitable candidates weighed on the pace of job creation.

The seasonally adjusted final U.S. Services Business Activity Index registered 64.6 in June, down from 70.4 in May. The latest expansion in output was the third-fastest since data collection began in October 2009, only slower than recent upturns in May and April. Labor shortages reportedly exacerbated strains meeting demand following sustained and robust increases in new sales. The rate of job creation was strong overall, but softened amid challenges enticing workers back to employment.

Read the full story here.