Source: Markit Economics
Private sector expansion in the United States slipped to a four-month low in May on the back of inflationary pressures and slower demand during the month. QQQ is down 3.35%, while SPY is down 2.12%.
- The Flash US PMI Composite Output Index was recorded at 53.8, lower than the 56.0 in the previous month.
- Manufacturers and providers attributed the slowdown to the inflationary uptick, weaker supplier delivery times, and slower demand growth.
- New order growth fell to the softest pace since August 2020, driven mainly by manufacturing firms. New export orders also eased to a four-month low.
- The Services Business Activity Index stood at 53.5, lower than the 55.6 in April and the weakest in four months.
- The Manufacturing Output Index stood at a three-month low of 55.2, following the 57.6 in April. Manufacturing PMI fell to a three-month low of 57.5 from 59.2.
- Business confidence remained upbeat, with firms indicating stronger optimism over the coming year.