The uptick in the composite index, which rose from May’s 51.5 level, was driven by gains across both the service and manufacturing sectors. The services PMI reached 51.3, exceeding the predicted 50.9, while manufacturing activity surged to 55.7, significantly outpacing the consensus estimate of 54.1. Despite these figures, spot gold remained down 1.56% on the day, last trading at $4,134.53 per ounce.

Chris Williamson, chief business economist at S&P Global Market Intelligence, cautioned that the broader economic picture remains fragile. While manufacturing growth was bolstered by precautionary inventory building, the service sector continues to struggle with subdued demand. Most concerning is the decline in employment levels, particularly within factories, where job cuts are at their highest since 2009, excluding the pandemic era. Williamson noted that current output suggests the U.S. economy is likely growing at an annualized rate of no more than 1% for the second quarter, hindered by high prices and waning consumer confidence.