With European PMIs plunging in June, and US Macro Surprise data collapsing, it was perhaps somewhat surprising that analysts only expected a marginal drop in preliminary June US PMIs. And we were right to be surprised as the data printed dramatically below expectations.
The manufacturing print is the weakest since June 2020, and Services at 5-month lows (but very close to two-year lows too).
This dragged the US Composite PMI tumbled to 51.2 – a 5-month low – signaling notable weakness in Q2 GDP (and Q3 GDP)…
Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:
“The pace of US economic growth has slowed sharply in June, with deteriorating forward-looking indicators setting the scene