According to S&P, the U.S. Economy Grew Close to 2% in the Second Quarter

The S&P Global "flash" U.S. service sector activity index declined to 54.1 in June, reaching a two-month low compared to the previous month's reading of 54.9. Economists surveyed by the Wall Street Journal had anticipated a reading of 53.3, indicating a slightly stronger performance.

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Similarly, the S&P Global "flash" U.S. manufacturing sector index decreased to a six-month low of 46.3 in June, down from May's reading of 48.4. Economists had predicted a reading of 49, reflecting a more positive outlook.

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It is important to note that readings above 50 indicate expansion, while readings below 50 signify contraction.

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In terms of key details, the services sector experienced a strong increase in new orders in June, with expansion rates closely resembling the 13-month high recorded in May. Conversely, manufacturers observed the sharpest contraction in new orders since December, attributing it to subdued consumer confidence and a lack of demand from foreign clients.

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Inflationary pressures appeared to be moderating, as the overall rate of selling prices for goods and services reached its lowest level since late 2020.

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Taking a broader perspective, the S&P Purchasing Managers' Index (PMI) provides insights into the future health of the economy, a crucial consideration given the uncertainty acknowledged by Federal Reserve officials regarding the U.S. economic outlook.

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An S&P composite output index indicated the fifth consecutive month of growth in private sector activity.

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Chief Business Economist at S&P Global, Chris Williamson, commented on the findings, stating, "The overall rate of expansion of business activity in the U.S. remained robust in June, consistent with GDP rising at a rate of 1.7% to put second-quarter growth in the region of 2%."

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