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Factory job cuts in June neared financial crisis and Covid levels, S&P says

US business activity reaches a five-month high in June even as manufacturing sector job cuts approach crisis-era levels.

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The brief

US business activity experienced an unexpected rise in the June flash PMI reading, reaching a five-month high of 52.2. Coverage from CNBC, Bloomberg, Seeking Alpha, MarketWatch, and KITCO identifies a mixed economic picture.

Outlets highlight that recent growth was supported by the World Cup and peace talks with Iran, though analysts note the economy has not yet moved past the danger point. It remains to be seen how the labor market will reconcile these job cuts with the overall increase in business activity.

Coverage does not yet specify the long-term impact on the broader economy or whether the current manufacturing trends will stabilize.

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Quick answers

What is the current flash composite PMI reading?

The flash composite PMI for June is 52.2, representing a five-month high.

How do recent factory job cuts compare to historical events?

According to S&P, job cuts in the manufacturing sector are nearing levels seen during the financial crisis and the Covid-19 pandemic.

What factors are credited with the recent boost in economic activity?

MarketWatch reports that activity was bolstered by the World Cup and peace talks with Iran.

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