Although the Composite reading of 63.9 was down from the previous month’s 68.7 with the move primarily driven by a slip back in the services sector.
However, for the US economy, it is clear that the supply constraints are having an impact.
This reduction in expansion is largely being attributed to the capacity constraints that are limiting the ability to cope with demand as opposed to any deterioration in the economic outlook.
There is also another aspect of the continued issues that the US economy faces, as companies are still struggling to fill job vacancies with suitable candidates.
This is leading to the rate of job creation at its lowest pace in three months.
This could now continue to show through with further disappointments in the Non-farm Payrolls data.
DATA: 23 Jun 15:45 *(US) JUN PRELIMINARY MARKIT PMI MANUFACTURING: 62.6 V 61.5E - PMI Services: 64.8 v 70.0e - PMI Composite: 63.9 v 68.7 prior Related ( EUR/USD USD/JPY JPY/USD SPY TLT INFLX FXY ). - Source TradeTheNews.com