MetroIntelligence Economic Update by P. DUFFY
June planned job cuts rise to highest total since February 2021
U.S.-based employers announced 32,517 cuts in June, a 58.8% increase from the 20,476 cuts announced in the same month last year and 57% higher than the 20,712 cuts announced in May. June marks the highest monthly total since February 2021, when 34,531 cuts were announced. It is the second time this year that cuts were higher in 2022 than the corresponding month a year earlier.
June U.S. business activity rose in 5 of 7 sectors, but slowest rate since February
June PMI data signalled an increase in business activity across five out of seven US sectors. Financials (index at 47.2) and Healthcare (49.5) both saw another fall in output during June, with the former posting its fastest pace of decline since May 2020. Consumer Services was the best-performing broad category in June (index at 56.8), helped by strong demand for travel,
leisure and hospitality. However, the latest overall expansion of business activity was the least marked since February. Similarly, output growth in the Consumer Goods sector hit a four-month low in June, which was linked to stretched household finances and weaker spending on discretionary items.
Mainland China reopening helps global manufacturing sectors, but signs of growth waning in services
The latest S&P Global Sector PMI™ data signalled ongoing output growth in the majority of sectors at the end of the second quarter, as a loosening of pandemic lockdowns in Mainland China helped to boost activity. That said, there were some signs that the boost to tourism, and services in general, provided by a lack of COVID-19 restrictions globally has started to wane amid strong inflationary pressures.