US BUSINESS ACTIVITY INDEX RISES IN JUNE
IHS Markit's flash US purchasing managers index jumped to 46.8 in June from a low of 37 in May, the company told Carmen Reinicke of Business Insider on June 25, 2020, indicating an easing in the economic slowdown.
It's the highest the index has reached since the coronavirus crisis hit the US. Still, any reading of less than 50 signals a contraction, Reinicke noted.
"The improvement will fuel hopes that the economy can return to growth in the third quarter," said Chris Williamson, chief business economist at IHS Markit, in the report.
While firms noted that demand had rebounded in June, it still remains historically low as consumers weigh a potential second wave of coronavirus cases. In addition, June signaled further cuts to workforce numbers, and both hiring freezes and weak demand led some companies to lay off workers in an effort to cut costs.