U.S. manufacturing activity grew more than expected, but factory employment fell to a six-year low

Odaily reported that driven by companies placing orders in advance to avoid shortages and price increases, U.S. manufacturing activity expanded again in June. However, factory employment fell to a six-year low, primarily due to rising operational costs exacerbated by the conflict in the Middle East.

The U.S. S&P Global Manufacturing PMI for June rose to 55.7 from 55.1 in May, marking the highest level since May 2022, while economists polled by Reuters had expected a decline to 54.8. The rise in the manufacturing PMI, along with the Services PMI preliminary reading increasing from 50.7 in May to 51.3, pushed the Composite PMI Output Index up from 51.5 last month to 52.2. The rebound in the Services PMI was partly attributed to the jointly hosted World Cup by the United States, Canada, and Mexico. (Jin Shi)