US: S&P Global Manufacturing PMI drops to 52.4 in June vs. 56 expected

• US manufacturing sector lost growth momentum in early June.
• US Dollar Index clings to modest daily gains after the data.

The S&P Global Manufacturing PMI plunged to 52.4 (flash) in June from 57 in May, missing the market expectation of 56 by a wide margin. This report revealed that the business activity in the manufacturing sector expanded at a much weaker pace in early June than it did in May.

Further details of the publication revealed that the Composite PMI declined to 51.2 from 53.6, compared to analysts’ estimate of 53.7.

Commenting on the data, “the pace of US economic growth has slowed sharply in June, with deteriorating forward-looking indicators setting the scene for an economic contraction in the third quarter,” said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

Market reaction

The US Dollar Index edged slightly lower after this report and was last seen posting small daily gains at 104.30.