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US business activity surges to 4-month high in June

US business activity surges to 4-month high in June

U.S. business activity climbed to the highest level in four months in June, as the Covid-19 slump eased with more firms and states starting to reopen following the coronavirus disease.

The Composite PMI including both manufacturing and services sector activities surged to 46.8 in June, the highest in four months from 37.0 in May, yet the reading still indicated contraction since it is below the 50 mark.

“The flash PMI data showed the US economic downturn abating markedly in June … the improvement will fuel hopes that the economy can return to growth in the third quarter” IHS Market said.

Markit anticipate “the US economy will contract by just over 8% in 2020,” but warned that “recovery could also be derailed by new waves of virus infections.”

As of 14:42 GMT, the dollar index traded lower for a second straight session at 96.34, as improvement in sentiment following a parade of upbeat PMI data from major economies dented the allure of the greenback as a refuge asset.

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