Flash PMI data—an advance metric from IHS Markit—indicate ongoing economic expansion, though at a slower rate than in previous months. The index for the service economy reached a three-month low, while manufacturing PMI and manufacturing output both hit nine-month lows. Despite the cyclically-low index readings, reasons for optimism abound. Service providers’ expectations for business growth over the next twelve months and the pace at which new work orders increased are both at their highest level since January. Yes, manufacturing output fell in June, but the increase in job creation and inventory growth indicate a lack of concern within the industry.

June 23rd, 2017

Posted In: Econ Indicators

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