U.S. manufacturing and services PMI come in lower than expected for June

Yahoo Finance anchor Julie Hyman breaks down S&P Global's latest preliminary PMI reading for manufacturing and services in June.

Video Transcript

- I'm going to bring you some breaking economic news right now. We've got the PMIs coming from S&P Global and they're not good. So we have the June preliminary reading, 52.4. That is a big drop from 57 that was registered the prior month. Services, 51.6, down from 53.4. And the composite-- the manufacturing PMI, excuse me, at 52.4. The composite PMI at 51.2.

All of these are decreases. The manufacturing one is especially sharp. But it's interesting that the services one is seeing that kind of a drop, considering that services are supposed to be holding up better. Remember 50, the dividing line between expansion and contraction. And speaking of contraction, there was the first drop in new orders since July of 2020. According to S&P Global, new export orders contracted at the steepest pace since June of 2020.

So yet more concerning signs for the US economy. Even if we're not in a recession yet, even if we're not going into a recession, this is some pretty stark slowing that we're seeing, particularly in that manufacturing activity.