Latest news with #U.S.CompositePMIOutputIndex
Economic Times
4 hours ago
- Business
- Economic Times
US business activity moderates; price pressures building up
U.S. business activity experienced a slight slowdown in June, while prices increased due to President Trump's tariffs on imported goods. Input costs for manufacturers surged, leading to higher prices for consumers. Economists anticipate an acceleration in inflation during the second half of the year, potentially influencing the Federal Reserve's monetary policy decisions. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads INFLATION POISED TO ACCELERATE Tired of too many ads? Remove Ads U.S. business activity slowed marginally in June, though prices increased further amid President Donald Trump's aggressive tariffs on imported goods, suggesting that an acceleration in inflation was likely in the second half of the survey from S&P Global on Monday showed measures of prices paid by factories for inputs and charged for finished products jumped to levels last seen in 2022. Nearly two-thirds of manufacturers reporting higher input costs attributed these to tariffs while just over half of respondents linked increased selling prices to tariffs, S&P Global supports economists' expectations that inflation would surge from June following mostly benign consumer and producer price readings in recent months. Economists have argued that inflation has been slow to respond to Trump's sweeping import duties because businesses were still selling stock accumulated before the tariffs came into effect.S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, slipped to 52.8 this month from 53.0 in May. A reading above 50 indicates expansion in the private survey's flash manufacturing PMI was unchanged at 52.0. Economists polled by Reuters had forecast the manufacturing PMI easing to 51.0. Its flash services PMI dipped to 53.1 from 53.7 in May. Economists had forecast the services PMI falling to 53.0. The survey was conducted in the June 12-20 period, before the U.S. joined in the conflict between Israel and Iran."The June flash PMI data indicated that the U.S. economy continued to grow at the end of the second quarter, but that the outlook remains uncertain while inflationary pressures have risen sharply in the past two months," said Chris Williamson, chief business economist at S&P Global Market hard data on retail sales, housing and the labor market have painted a picture of an economy that was softening because of the uncertainty caused by the constantly shifting tariffs policy. The escalation in tensions in the Middle East added another layer of S&P Global survey's measure of new orders received by businesses declined to 52.3 from 53.0 in May. A measure of prices paid by businesses for inputs fell to 61.6 from 63.2 last month. But manufacturers faced higher input costs, with this price gauge jumping to 70.0 this month. That was the highest reading since July 2022 and followed 64.6 in paid for inputs by services businesses remained elevated, with tariffs, higher financing, wage and fuel costs cited. The pace of increase, however, slowed amid survey's measure of prices charged by businesses for goods and services remained at lofty levels as manufacturers passed on the increased costs from tariffs to consumers. The prices charged gauge for manufacturers shot up to 64.5, the highest since July 2022, from 59.7 in oil prices because of the strife in the Middle East are seen contributing to higher Federal Reserve last week kept the U.S. central bank's benchmark overnight interest rate in the 4.25%-4.50% range, where it had been since December. Fed Chair Jerome Powell told reporters he expected "meaningful" inflation ahead."The data therefore corroborate speculation that the Fed will remain on hold for some time to both gauge the economy's resilience and how long this current bout of inflation lasts for," Williamson picked up this month, mostly driven by manufacturing, where some factories are experiencing order backlogs. S&P Global noted a slight rise in optimism among manufacturers "in part reflecting hopes of greater benefits from trade protectionism."It, however, added that "companies generally remained less upbeat than prior to the inauguration of President Trump."
Time of India
8 hours ago
- Business
- Time of India
US business activity moderates; price pressures building up
U.S. business activity experienced a slight slowdown in June, while prices increased due to President Trump's tariffs on imported goods. Input costs for manufacturers surged, leading to higher prices for consumers. Economists anticipate an acceleration in inflation during the second half of the year, potentially influencing the Federal Reserve's monetary policy decisions. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads INFLATION POISED TO ACCELERATE Tired of too many ads? Remove Ads U.S. business activity slowed marginally in June, though prices increased further amid President Donald Trump's aggressive tariffs on imported goods, suggesting that an acceleration in inflation was likely in the second half of the survey from S&P Global on Monday showed measures of prices paid by factories for inputs and charged for finished products jumped to levels last seen in 2022. Nearly two-thirds of manufacturers reporting higher input costs attributed these to tariffs while just over half of respondents linked increased selling prices to tariffs, S&P Global supports economists' expectations that inflation would surge from June following mostly benign consumer and producer price readings in recent months. Economists have argued that inflation has been slow to respond to Trump's sweeping import duties because businesses were still selling stock accumulated before the tariffs came into effect.S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, slipped to 52.8 this month from 53.0 in May. A reading above 50 indicates expansion in the private survey's flash manufacturing PMI was unchanged at 52.0. Economists polled by Reuters had forecast the manufacturing PMI easing to 51.0. Its flash services PMI dipped to 53.1 from 53.7 in May. Economists had forecast the services PMI falling to 53.0. The survey was conducted in the June 12-20 period, before the U.S. joined in the conflict between Israel and Iran."The June flash PMI data indicated that the U.S. economy continued to grow at the end of the second quarter, but that the outlook remains uncertain while inflationary pressures have risen sharply in the past two months," said Chris Williamson, chief business economist at S&P Global Market hard data on retail sales, housing and the labor market have painted a picture of an economy that was softening because of the uncertainty caused by the constantly shifting tariffs policy. The escalation in tensions in the Middle East added another layer of S&P Global survey's measure of new orders received by businesses declined to 52.3 from 53.0 in May. A measure of prices paid by businesses for inputs fell to 61.6 from 63.2 last month. But manufacturers faced higher input costs, with this price gauge jumping to 70.0 this month. That was the highest reading since July 2022 and followed 64.6 in paid for inputs by services businesses remained elevated, with tariffs, higher financing, wage and fuel costs cited. The pace of increase, however, slowed amid survey's measure of prices charged by businesses for goods and services remained at lofty levels as manufacturers passed on the increased costs from tariffs to consumers. The prices charged gauge for manufacturers shot up to 64.5, the highest since July 2022, from 59.7 in oil prices because of the strife in the Middle East are seen contributing to higher Federal Reserve last week kept the U.S. central bank's benchmark overnight interest rate in the 4.25%-4.50% range, where it had been since December. Fed Chair Jerome Powell told reporters he expected "meaningful" inflation ahead."The data therefore corroborate speculation that the Fed will remain on hold for some time to both gauge the economy's resilience and how long this current bout of inflation lasts for," Williamson picked up this month, mostly driven by manufacturing, where some factories are experiencing order backlogs. S&P Global noted a slight rise in optimism among manufacturers "in part reflecting hopes of greater benefits from trade protectionism."It, however, added that "companies generally remained less upbeat than prior to the inauguration of President Trump."
Yahoo
9 hours ago
- Business
- Yahoo
US business activity moderates; price pressures building up
By Lucia Mutikani WASHINGTON (Reuters) -U.S. business activity slowed marginally in June, though prices increased further amid President Donald Trump's aggressive tariffs on imported goods, suggesting that an acceleration in inflation was likely in the second half of the year. The survey from S&P Global on Monday showed measures of prices paid by factories for inputs and charged for finished products jumped to levels last seen in 2022. Nearly two-thirds of manufacturers reporting higher input costs attributed these to tariffs while just over half of respondents linked increased selling prices to tariffs, S&P Global said. That supports economists' expectations that inflation would surge from June following mostly benign consumer and producer price readings in recent months. Economists have argued that inflation has been slow to respond to Trump's sweeping import duties because businesses were still selling stock accumulated before the tariffs came into effect. S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, slipped to 52.8 this month from 53.0 in May. A reading above 50 indicates expansion in the private sector. The survey's flash manufacturing PMI was unchanged at 52.0. Economists polled by Reuters had forecast the manufacturing PMI easing to 51.0. Its flash services PMI dipped to 53.1 from 53.7 in May. Economists had forecast the services PMI falling to 53.0. The survey was conducted in the June 12-20 period, before the U.S. joined in the conflict between Israel and Iran. "The June flash PMI data indicated that the U.S. economy continued to grow at the end of the second quarter, but that the outlook remains uncertain while inflationary pressures have risen sharply in the past two months," said Chris Williamson, chief business economist at S&P Global Market Intelligence. So-called hard data on retail sales, housing and the labor market have painted a picture of an economy that was softening because of the uncertainty caused by the constantly shifting tariffs policy. The escalation in tensions in the Middle East added another layer of uncertainty. INFLATION POISED TO ACCELERATE The S&P Global survey's measure of new orders received by businesses declined to 52.3 from 53.0 in May. A measure of prices paid by businesses for inputs fell to 61.6 from 63.2 last month. But manufacturers faced higher input costs, with this price gauge jumping to 70.0 this month. That was the highest reading since July 2022 and followed 64.6 in May. Prices paid for inputs by services businesses remained elevated, with tariffs, higher financing, wage and fuel costs cited. The pace of increase, however, slowed amid competition. The survey's measure of prices charged by businesses for goods and services remained at lofty levels as manufacturers passed on the increased costs from tariffs to consumers. The prices charged gauge for manufacturers shot up to 64.5, the highest since July 2022, from 59.7 in May. Rising oil prices because of the strife in the Middle East are seen contributing to higher inflation. The Federal Reserve last week kept the U.S. central bank's benchmark overnight interest rate in the 4.25%-4.50% range, where it had been since December. Fed Chair Jerome Powell told reporters he expected "meaningful" inflation ahead. "The data therefore corroborate speculation that the Fed will remain on hold for some time to both gauge the economy's resilience and how long this current bout of inflation lasts for," Williamson said. Employment picked up this month, mostly driven by manufacturing, where some factories are experiencing order backlogs. S&P Global noted a slight rise in optimism among manufacturers "in part reflecting hopes of greater benefits from trade protectionism." It, however, added that "companies generally remained less upbeat than prior to the inauguration of President Trump." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
23-05-2025
- Business
- Economic Times
Recession fear is no more, claim experts but send chilling warning about US economy
US economy was earlier predicted to be at risk of slipping into recession. While the danger of inflation still remains, the apprehension of something massive in magnitude has come down. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads FAQs Recession fears likely to have gone down as the US business activity picked up in May. The improvement in the PMI, key indicator to the manufacturing and services sectors, aligns with economists' expectations for a rebound in economic activity this quarter after gross domestic product contracted at a 0.3 per cent annualized rate in the first quarter. Though risks of a recession have diminished, the economy remains in danger of experiencing a period of tepid growth and high inflation, which could complicate matters for the Federal Reserve, as per a reported that economists expect GDP growth to slow to below 1 per cent this year, with Personal Consumption Expenditures (PCE) inflation, excluding the volatile food and energy components, forecast to rise about 3.5 per cent. The economy grew 2.8 per cent in 2024, while the so-called core PCE inflation increased 2.8 per cent.U.S. business activity picked up in May amid a truce in the trade war between Washington and China, but President Donald Trump's sweeping tariffs on imported goods raised prices for companies and survey from S&P Global on Thursday hinted at an acceleration in inflation in the coming months and a labor market slowdown, a reminder that stagflation remained a risk for the economy despite steps by the Trump administration to de-escalate trade tensions with Beijing.S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 52.1 this month from 50.6 in April. A reading above 50 indicates expansion in the private survey's flash manufacturing PMI increased to 52.3 from 50.2 in the prior month. Economists polled by Reuters had forecast the manufacturing PMI would dip to 50.1. Its flash services PMI rose to 52.3 from 50.8 in April. Economists had forecast the services PMI would be survey was conducted in the May 12-21 period, after the White House announced a deal to slash duties on imports from China to 30 per cent from 145 per cent for 90 days.A1. economists expect GDP growth to slow to below 1 per cent this year, with Personal Consumption Expenditures (PCE) inflation, excluding the volatile food and energy components, forecast to rise about 3.5 per cent.A2. The full form of PCE is Personal Consumption Expenditures.
Time of India
22-05-2025
- Business
- Time of India
Recession fear is no more, claim experts but send chilling warning about US economy
Recession fears likely to have gone down as the US business activity picked up in May. The improvement in the PMI, key indicator to the manufacturing and services sectors, aligns with economists' expectations for a rebound in economic activity this quarter after gross domestic product contracted at a 0.3 per cent annualized rate in the first quarter. Though risks of a recession have diminished, the economy remains in danger of experiencing a period of tepid growth and high inflation, which could complicate matters for the Federal Reserve, as per a report. Reuters reported that economists expect GDP growth to slow to below 1 per cent this year, with Personal Consumption Expenditures (PCE) inflation, excluding the volatile food and energy components, forecast to rise about 3.5 per cent. The economy grew 2.8 per cent in 2024, while the so-called core PCE inflation increased 2.8 per cent. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Most Beautiful Female Athletes in the World Click Here Undo U.S. business activity picked up in May amid a truce in the trade war between Washington and China, but President Donald Trump's sweeping tariffs on imported goods raised prices for companies and consumers. Live Events The survey from S&P Global on Thursday hinted at an acceleration in inflation in the coming months and a labor market slowdown, a reminder that stagflation remained a risk for the economy despite steps by the Trump administration to de-escalate trade tensions with Beijing. S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 52.1 this month from 50.6 in April. A reading above 50 indicates expansion in the private sector. The survey's flash manufacturing PMI increased to 52.3 from 50.2 in the prior month. Economists polled by Reuters had forecast the manufacturing PMI would dip to 50.1. Its flash services PMI rose to 52.3 from 50.8 in April. Economists had forecast the services PMI would be unchanged. The survey was conducted in the May 12-21 period, after the White House announced a deal to slash duties on imports from China to 30 per cent from 145 per cent for 90 days. FAQs Q1. What have economic experts claimed? A1. economists expect GDP growth to slow to below 1 per cent this year, with Personal Consumption Expenditures (PCE) inflation, excluding the volatile food and energy components, forecast to rise about 3.5 per cent. Q2. What is full form of PCE? A2. The full form of PCE is Personal Consumption Expenditures.
