7/6/2020, 3:46 PM (Source: TeleTrader)
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US services sector activity increases in June

The services sector in the United States expanded in June compared to the previous month as the coronavirus pandemic recovery started, IHS Markit reported on Monday. The seasonally adjusted US services business activity index stood at 47.9 in June, climbing from 37.5 recorded in May. Meanwhile, the IHS Markit composite PMI output index landed at 47.9 last month, increasing by 10.9 points compared to May.

In the services sector, new business inflows stabilized as demand increased. Additionally, both input prices and output charges were higher, rising inflationary pressures.

However, chief business economist at IHS Markit, Chris Williamson, warned: "There remains a strong possibility that growth could tail off after the initial rebound due to weak demand and persistent virus containment measures. The need to reintroduce lockdowns to fight off second waves of coronavirus infections will pose a particular threat to recovery momentum, and could drive a return of the recession."

Breaking the News / VP