Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

WITH A LITTLE PRESSURE ON THE GAS PEDAL, U.S. BUSINESS ACTIVITY ACCELERATES A TAD

Business activity in the United States is continuing its expansion this month, and at a modestly accelerated clip.

S&P Global's advance "Flash" June purchasing managers' indexes (PMI) showed the manufacturing side USMPMP=ECI unexpectedly gaining 0.6 point to 55.7, instead of shedding the expected 0.3 point. That marks its most robust expansion since May 2022.

The services sector USMPSP=ECI also added 0.6 points to land at 51.3, a tad north of consensus.

Taken together, the composite measure USPMCF=ECI gained momentum, rising to 52.2 from 51.5.

All metrics are comfortably above 50, the PMI dividing line between contraction and expansion.

While this marks the third straight month of improved business activity growth, companies cut back on staffing levels, largely due to concerns over near-term outlook and rising input costs, which have resulted in an unchanged and elevated rate of selling price inflation.

Although manufacturers expanded at a more robust pace than services, strong demand for manufactured goods is being buoyed by "precautionary stock building amid increasingly widespread supply issues," the press release says.

"Brighter news out of the Middle East has helped restore some confidence among US businesses in June, though the overall rate of economic growth signalled by the flash PMI survey remains relatively sluggish compared to that seen earlier in the year in the lead up to the conflict," writes Chris Williamson, S&P Global's chief business economist.

"The service sector continues to grow at an especially subdued pace, reflecting push-back from customers over high prices amid low levels of consumer confidence in particular," Williamson adds. "While there is better news from the manufacturing sector, we remain concerned as factory growth continues to be temporarily buoyed by inventory building amid supply fears."

(Stephen Culp)

*****

EARLIER ON LIVE MARKETS:

TECH, CHIPMAKERS LEAD EARLY LOSSES ON WALL STREET CLICK HERE

CRUISIN FOR A BRUISIN: STOCKS SET FOR TECH-DRIVEN SELLOFF CLICK HERE

DISREGARD EUROPEAN CHEMICALS' Q2 EARNINGS BEATS CLICK HERE

HEDGE FUNDS BLINK FIRST IN CROWDED AI TRADE CLICK HERE

IS THE EURO ZONE INFLATION SCARE OVER? CLICK HERE

DRINKS AND DRUGS OFFER SHELTER AS STOXX DROPS 1% CLICK HERE

BEFORE THE BELL: TECH SELLOFF TO DRAG EUROPE LOWER CLICK HERE

YEN ZOOMS INTO TROUBLE CLICK HERE