Weak overall US PMI growth, service sector still in contraction
Industry activity in the United States shows growth in July. Markit reported this based on a preliminary estimate.
Markit’s purchasing managers index for this month stood at 51.3 versus 49.8 in June. Economists generally expected a score of 52. A level of 50 or more indicates growth, including shrinkage.
The index for the US services sector rose to 49.6 from 47.9 a month earlier. A level of 51 was predicted here. The composite indicator of industry and services improved to 50 from 47.9 in June.
Economic activity in the US is picking up cautiously as the coronavirus lockdown measures are eased and factories and businesses are getting back on track. However, the number of new corona infections in the US has been increasing sharply recently, which could undermine the economic recovery if restrictive measures are reintroduced.
Earlier in the day, Markit announced that the eurozone manufacturing and services sector will show growth in July.