US private sector output contracts for 1st time in over 2 years

Flash US PMI Composite Output Index at 47.5, hitting 26-month low

By Tuba Sahin

ANKARA (AA) – Amid muted client demand, US private sector firms' business activity in July contracted for the first time since June 2020, according to a flash estimate from financial services company S&P Global on Friday.

The S&P Global US Flash Composite Purchasing Manufacturing Index (PMI) fell to 47.5 in July, down from 52.3 in June.

The rate of decline was the sharpest since May 2020, as both manufacturers and service providers reported weak demand conditions induced by severe inflationary pressures and hikes in interest rates.

New export orders declined for the second month in a row, while new orders rebounded but the rise was only modest.

Service providers saw a marginal upturn in new business, while manufacturers recorded a second successive fall in new order inflows.

The flash PMI for services dropped to a 26-month low with 47 in June, while for manufacturing it hit 52.7, the weakest in 24 months.

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