IHS Markit: US Services Sector Showing Softer Contraction

Seasonally adjusted IHS Markit US Services Business Activity Index registered 47.9 at the end of the second quarter (Q2) of 2020.

This comes after the index recorded a reading of 37.5 in May, thus, showing a softer rate of contraction in business activity across the US.

The IHS Markit Composite Purchasing Managers’ Index (PMI) Output Index posted 47.9 in June, up significantly from 37.0 in May.

New business inflows broadly stabilized in June, after three successive monthly contractions.

Moreover, business confidence returned to the positive territory at the end of the second quarter, amid hopes of further boosts to new sales.

“Optimism towards the outlook for output follows two consecutive months of pessimism,” IHS Markit noted in its report on Monday.