US Services PMI in June
The June US Services PMI (Purchasing Managers’ Index) report indicates an improvement in the US (SPY) (QQQ) (VFINX) business climate. It was 54.2 in June compared to 53.6 in May 2017. It beat the preliminary market expectation of 53.0.
After a huge fall in February and March, the services PMI has been showing gradual improvement since April. Services PMIs include the performance of various service industries such as financial intermediaries, transportation and communication, computer and IT (information technology) services, and hotels and restaurants.
Let’s look at some of the key factors in the US Services PMI:
- Production volume showed a stronger improvement in June 2017.
- New order growth and export orders improved at a stronger rate in June compared to May.
- Employment in the services sector posted strong growth in June.
The falls in the services PMI in February and March raised concerns about the US business condition. Poor domestic demand and weak production output both significantly affected the performance of the services sector. However, a gradual improvement since April is indicating that the services sector is regaining strength.
Performance of various ETFs in June
The SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500 Index, rose marginally, nearly 0.60%, in June 2017. The PowerShares QQQ ETF (QQQ), which tracks the performances of major US technology companies, fell nearly 2.3% in June.
In the next part of this series, we’ll analyze the performance of the Germany Services PMI in June 2017.