US final Markit June PMI registers 51.3; Brexit poses risk to US exports
The seasonally adjusted final Markit US Manufacturing Purchasing Managers’ Index (PMI) registered 51.3 in June, up from 50.7 in May as manufacturers indicated a slight rebound in production volumes during June, helped by the fastest rise in new work since March.
However, the latest survey signalled that growth momentum remained relatively subdued in comparison to its post-crisis trend, which contributed to cautious job hiring and further efforts to reduce inventories in June, Markit said.
The earlier ‘flash’ reading for June was 51.4. Higher levels of production, new orders and employment all helped to
boost the headline index, while an accelerated fall in stocks of purchases was the only negative influence, it added.
Markit chief economist Chris Williamson, chief economist at Markit said the UK's vote to leave the European Union were "likely to unsettle the global business environment further in coming months, and therefore risk dampening growth in the US and export markets".
“Producers are struggling in the face of the strong dollar, the energy sector decline and presidential election jitters," he added.
"The data flow in the next two months will therefore be critical to policymakers in gauging the appropriate outlook for interest rates.”