Private-Sector Output Growth Eases as Falling Exports Weigh, S&P Survey Shows

12:00 PM EDT, 06/23/2025 (MT Newswires) -- US private-sector output growth decelerated in June amid falling exports, according to S&P Global's (SPGI) flash purchasing managers' index released Monday.

The composite output index slipped to a two-month low of 52.8 from 53 in May. The consensus in a survey compiled by Bloomberg indicated a 52.1 reading. The 50-point mark separates expansion from contraction.

The services index dropped to a two-month low of 53.1 from last month's 53.7, while the manufacturing PMI held steady at 52. Analysts were looking for 52.9 and 51.0, respectively.

"The June flash PMI data indicated that the US economy continued to grow at the end of the second quarter, but that the outlook remains uncertain while inflationary pressures have risen sharply in the past two months," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

"Although business activity and new orders have continued to grow in June, growth has weakened amid falling exports of both goods and services," he said. "Furthermore, while domestic demand has strengthened, notably in manufacturing, to encourage higher employment, this in part reflects a boost from stock building, in turn often linked to concerns over higher prices and supply issues resulting from tariffs."

That boost to demand is likely to lose steam in the coming months, Williamson said.

Price pressures intensified in both manufacturing and services largely due to tariffs, S&P Global (SPGI) said.

The US and China recently agreed on a framework for implementing a trade deal that suspended most tariffs on each other's imports for 90 days. In April, Trump declared a 90-day pause on certain tariffs for countries that didn't retaliate to his reciprocal duties.

Price: 511.65, Change: +7.44, Percent Change: +1.48

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.