Forget about today’s ugly Q1 GDP report because America’s services industry is hot.
According to Markit, U.S. services purchasing managers index (PMI) unexpectedly jumped to 61.2 in June from 58.1 in May.
This was stronger than the 58.0 expected by economists.
“Business activity in the US service sector surged higher in June,” said Markit’s Chris Williamson. “A record high in the services PMI follows news from the flash manufacturing PMI that factory output grew in June at the fastest rate for just over four years. Combined, the two PMI surveys indicate that business activity is growing at the strongest rate seen since prior to the financial crisis.”
Here are the key points from Markit’s report:
- Survey-record increases in services output and new business levels
- Service sector job creation hits nine-month high
- Fastest rise in cost burdens since October 2013
“Improved confidence has fed through to increased hiring,” said Williamson. “Manufacturing and services sector firms took on staff at the fastest rate that we have seen since the financial crisis, boding well for another month of 200,000-plus non-farm payroll growth in June.”
Here’s a break down of the PMI: