Headline: US June Composite PMI Hits 5-Month High; Manufacturing Jobs Plunge to 6-Year Low

U.S. business activity accelerated in June, with the S&P Global Composite PMI reaching a five-month high of 52.2, up from 51.5 in May. This manufacturing-driven surge contrasted sharply with factory employment, which plummeted to a six-year low of 47.0 (from 51.6). This divergence suggests companies build inventory amid supply concerns while cutting labor. The preliminary Manufacturing PMI rose to 55.7 in June (from 55.1), its highest since May 2022. Services PMI also increased to 51.3 (from 50.7). S&P Global Chief Business Economist Chris Williamson attributed manufacturing's strength partly to businesses pre-stocking against potential supply disruptions and price increases, not solely from broad end-user demand recovery. Despite slightly easing input cost growth, selling prices remained elevated. This supports expectations for persistent inflation and potential Fed rate hikes. Accelerated factory layoffs, the worst outside the pandemic since 2009, reflect corporate caution on sustained demand and efforts to offset rising material costs.