Price pressures grow in US in June, PMIs show

Private sector firms in the US continued to record a solid rate of expansion amid signs that economic growth might pick up again, the results of a widely-followed survey showed.

IHS Markit's composite manufacturing and service sector purchasing managers index slipped from 53.6 in May to 53.0 for June - a three-month low.

The PMI tracking service sector activity fell back from a reading of 53.6 to 53.0, with another tracking manufacturing moving from 52.7 to 52.1, according to preliminary readings.

Input cost pressures were more intense in June, with the survey respondents linking that to higher staff salaries and increased raw material costs.

The same was true of the prices charged by firms themselves, which saw one of the biggest increases of the past two years.

IHS chief business economist Chris Williamson said Friday's PMI readings were consistent with a rate of growth in gross domestic product during the second quarter of approximately 2.0%, albeit with risks of a lower turnout.

However, Wiliamson said there were signs that growth might pick-up again.

"New orders showed the largest monthly rise since January, business optimism about the year ahead perked up and hiring remained encouragingly resilient. The survey is indicative of non-farm payroll growth of approximately 170,000."