On Friday, data released by S&P Global showed that the US Markit PMI data for June was better than expected across the board, indicating that the US economy remains resilient.
The initial value of the US S&P Global Manufacturing PMI in June was 51.7, exceeding the expected 51 and the previous value of 51.3, reaching a 3-month high. The initial value of the US S&P Global Services PMI in June was 55.1, also higher than the expected 53.7 and the previous value of 54.8, reaching a 26-month high. The initial value of the US Composite S&P Global PMI in June was 54.6, also exceeding the expected 53.5 and the previous value of 54.5.
After the release of the U.S. manufacturing and service PMI data, spot gold plunged in the short term, falling 1% on the day and losing the $2,340 mark. Spot silver fell below the 30 mark, falling more than 3% on the day.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the PMI data showed that the U.S. economy grew at its fastest pace in more than two years in June, and the second quarter will see encouragingly strong growth, while inflationary pressures have also cooled. He said:
"The upturn is broad-based as rising demand continues to filter through the economy, with demand in the services sector increasing, reflecting strong domestic spending, and manufacturing continuing to recover. So far this year, the manufacturing sector is enjoying its best growth momentum in two years. Business optimism about the outlook has improved, driving a recovery in hiring intentions."
He also noted that, at the same time, sales price inflation cooled again after a small increase in May, falling to one of the lowest levels in the past four years. Historical comparisons show that the recent decline has brought the price indicator in line with the Fed's 2% inflation target.
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The article is forwarded from: Jinshi Data
