US S & P Global announced on the 22nd of July that the preliminary figures for the US General Purchasing Managers' Index (PMI) in July were 47.5, down from the June revised figure of 52.3, and the economy expanded. It fell below 50, the milestone of contraction, for the first time in about two years.
While the manufacturing industry continued to grow moderately, the service industry slowed down sharply, suggesting that the economy was stagnant due to high inflation, rising interest rates, and worsening consumer confidence.
The decline was in July for 4 consecutive months. The decline in the service industry PMI was remarkable, falling from 52.7 in the previous month to 47.0, the lowest level since May 2020.
On the other hand, the manufacturing PMI fell from 52.7 to 52.3. Although it continues to exceed the milestone of 50, it is the lowest level since July 2008.
The economist forecast compiled by Reuters was 52.6 for the service industry PMI and 52.0 for the manufacturing industry PMI.
"July PMI preliminary figures indicate concerns about the economic downturn," said Chris Williamson, a chief business economist at S & P Global Market Intelligence.
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