European Investor
23 Jun 2026, 14:06
U.S. business activity accelerated in June, supported by stronger growth in both the manufacturing and services sectors, while labor market data continued to signal a resilient economy.
The S&P Global Manufacturing PMI rose to 55.7, beating expectations of 54.6 and improving from 55.1 in May. The reading points to solid expansion in factory activity and suggests demand remains healthy despite higher interest rates and ongoing economic uncertainty.
The services sector also showed improvement, with the S&P Global Services PMI increasing to 51.3 from 50.7 and exceeding the 51.1 consensus estimate. As services account for the majority of U.S. economic output, the stronger reading indicates continued strength in consumer and business spending.
Meanwhile, ADP data showed private-sector employers added 30,750 jobs during the week, up from 25,500 previously, reinforcing the view that labor market conditions remain stable.
The stronger-than-expected PMI reports suggest the U.S. economy maintained momentum at the end of the second quarter. However, the combination of resilient growth and a healthy labor market could also support the Federal Reserve's cautious approach to interest rate cuts, as policymakers continue to monitor inflation pressures.
Financial markets are likely to view the data as evidence that economic activity remains robust, although stronger growth may also contribute to expectations that interest rates will stay elevated for longer.
The S&P Global Manufacturing PMI rose to 55.7, beating expectations of 54.6 and improving from 55.1 in May. The reading points to solid expansion in factory activity and suggests demand remains healthy despite higher interest rates and ongoing economic uncertainty.
The services sector also showed improvement, with the S&P Global Services PMI increasing to 51.3 from 50.7 and exceeding the 51.1 consensus estimate. As services account for the majority of U.S. economic output, the stronger reading indicates continued strength in consumer and business spending.
Meanwhile, ADP data showed private-sector employers added 30,750 jobs during the week, up from 25,500 previously, reinforcing the view that labor market conditions remain stable.
The stronger-than-expected PMI reports suggest the U.S. economy maintained momentum at the end of the second quarter. However, the combination of resilient growth and a healthy labor market could also support the Federal Reserve's cautious approach to interest rate cuts, as policymakers continue to monitor inflation pressures.
Financial markets are likely to view the data as evidence that economic activity remains robust, although stronger growth may also contribute to expectations that interest rates will stay elevated for longer.