EconUpdate by P. Duffy
Service sector economic index slips to 60.1 percent in June due to labor and supply challenges
What does this mean? Service providers are continuing to contend with challenges meeting pent-up demand.
The Services PMI registered 60.1 percent in June, which is 3.9 percentage points lower than May’s all-time high reading of 64 percent. The June reading indicates the 13th straight month of growth for the services sector, which has expanded for all but two of the last 137 months. Challenges with materials shortages, inflation, logistics and employment resources continue to be an impediment to business conditions.
All seven US sectors report strong growth in June, led by Healthcare
What does this mean? Despite rising cost pressures the U.S. economy continues to rebound quickly.
Sharply rising volumes of business activity were recorded across all seven broad categories monitored by the US Sector PMI series in June. That said, all categories except Healthcare experienced a slowdown in growth since May. On the jobs front, Technology companies posted the fastest upturn in payroll numbers, followed by Healthcare. Meanwhile, cost pressures were strongest in the Basic Materials and Technology sectors, with the rate of input price inflation hitting survey-record highs in each category.
June job growth rebounds to 850,000, unemployment rate edges back up to 5.9 percent
What does this mean? More workers quitting for better jobs and idled workers coming back into the workforce are signs of a improving economy.
Total nonfarm payroll employment rose by 850,000 in June, and the unemployment rate edged up to 5.9 percent. Notable job gains occurred in leisure and hospitality, public and private education, professional and business services, retail trade, and other services. Among the unemployed, the number of job leavers–that is, unemployed persons who
quit or voluntarily left their previous job and began looking for new employment–increased by 164,000 to 942,000 in June.