A reading below 50 indicates that business activity has contracted, which is likely to fuel debate about whether the US economy is back in recession, or close to it.after recovering from the slump in early 2020 at the start of the COVID-19 pandemic.
July’s decline marks the fourth consecutive monthly decline and was largely caused by notable weakness in the services sector index, which fell to the lowest level since May 2020, 47.0 points, compared to 52.7. of the previous month.
The decline in services was enough to offset the relative stability of the manufacturing sector. The factory activity index fell to 52.3 from 52.7, indicating the sector is still growing, but now at its weakest pace since July 2020.
Economists polled by Reuters had a median estimate for the services sector index of 52.6, while they expected a manufacturing index of 52.0.
“Preliminary PMI data for July points to a worrying deterioration in the economy,” S&P Global chief business economist Chris Williamson said in a statement.
“Excluding the months of pandemic lockdown, output is falling at a rate not seen since 2009 in the midst of the global financial crisis.” (Reporting by Dan Burns Edited in Spanish by Javier López de Lérida)
Source: Ambito
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