The US economy is sending two very different signals at once. Manufacturing is humming along at its fastest pace in four years. Services, which accounts for the larger share of economic activity, is barely moving.
S&P Global’s flash PMI data for June, released on June 23, puts manufacturing at 55.1 and services at 50.7. Both figures sit above 50, which is the threshold separating expansion from contraction, but the gap between them tells a story worth paying attention to.
What the numbers actually mean
Think of a PMI reading like a company’s quarterly mood survey. Every month, purchasing managers across hundreds of firms answer questions about new orders, employment, supplier deliveries, inventories, and prices. The responses get compiled into a single number.
Above 50 means conditions improved. Below 50 means they deteriorated. At 55.1, manufacturing isn’t just expanding, it’s doing so with noticeable momentum.
