June signals substantial expansion in private sector activity, delivery delay drags

▪ Flash U.S. Composite Output Index at 68.1 (63.5 in April). Series record high.
▪ Flash U.S. Services Business Activity Index at 70.1 (64.7 in April). Series record high.
▪ Flash U.S. Manufacturing PMI at 61.5 (60.5 in April). Series record high.
▪ Flash U.S. Manufacturing Output Index at 58.1 (57.2 in April). 4-month high.

Private sector firms across the US signalled an unprecedented expansion in business activity in May. Growth was driven by the fastest service sector upturn on record, with the increase in manufacturing output also accelerating amid stronger client demand.

Adjusted for seasonal factors, the IHS Markit Flash U.S. Composite PMI Output Indexposted68.1 in May, up from 63.5 in April. The rate of expansion was unprecedented after surpassing April’s previous series record. Goods producers and service providers alike noted stronger paces of activity growth midway through the second quarter.