Overview
- U.S. services activity stayed in expansion in June with the ISM non-manufacturing PMI at 54.0 and the employment subindex rising to 51.2, signaling renewed hiring in the sector.
- Several surveys reported weaker input-cost pressure in June after oil and freight rates fell following a fragile ceasefire between the U.S. and Iran, which helped bring services inflation down from May peaks.
- Britain’s construction sector remained in sharp contraction with S&P Global’s UK Construction PMI at 38.4 and employment falling for an 18th straight month, driven by a collapse in housebuilding and weak civil engineering work.
- Canada’s services sector slipped back into contraction with S&P Global’s Business Activity Index at 47.1 as firms cited geopolitical worries, high prices and falling new business that eroded confidence.
- Emerging markets showed mixed outcomes: Nigeria’s headline Stanbic IBTC PMI rose to 53.4 even as manufacturing output declined and input-price inflation stayed high, while South Africa’s private sector nudged into expansion at 50.5 with a notable cooling in input-price inflation.