S&P Global reports that the country’s Purchasing Managers continue to buy those raw materials, components, and services at a rate that indicates the Economy is continuing to expand. But it is only the Service Sector that is growing.
As the first step in the production process, Purchasing Managers provide an excellent indicator of future business activity.
In the latest reading of the PMI, we see an ongoing trend of a relatively robust service sector and an increasingly weak manufacturing sector.
The Service Sector Index was 52.0 (two points above contraction), indicating relative strength. While the Manufacturing Index declined to a mere 46.0 (4 points into contraction) and the lowest level in over two years.
Increasingly this is an economy that is reliant on service for sustained growth.
For a complete report, go to:
https://www.pmi.spglobal.com/Public/Home/PressRelease/bbdd92c5f4a34bb5975b23263409ad3d
