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06.07.2016 14:39

US business activity index for the services sector rose slightly in June

Data for June from Markit showed a steady growth of business activity in the US service sector, which has helped the most rapid expansion of new orders since the beginning of 2016, however, growth remains weak in comparison with the post-crisis trend, helped by a slowdown in job creation for third consecutive month in June. Business expectations for the year ahead have also continued to soften, while service providers showed the lowest degree of optimism ever since the survey began in October 2009.

The seasonally adjusted index of business activity in the US services sector by Markit rose slightly to 51.4 in June from 51.3 in May, and signaled a further slight expansion of service sector activity.

On average, in the second quarter of 2016 the index rose slightly compared with the previous quarter (to 51.8 in Q2 from 51.4 in Q1).

Respondents noted the overall improvement in customer spending, but there were also reports that restrained business confidence and growing economic uncertainty acted as a brake on growth in June.

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