U.S. factories are humming. Manufacturing activity climbed to a record high in June even as companies struggle to secure raw materials and workers.
IHS Markit reported Wednesday its flash manufacturing PMI rose to 62.6 this month from 62.1 in May.
That bodes well for economists’ expectations calling for double-digit growth in the second quarter. Demand for goods remains robust even as the economy reopens.
But that strong demand is feeding into higher inflation as raw materials and finished products prices skyrocket and uncompleted work piles up.
Activity is moderating for businesses in the services sector, which also worries about rising inflation and the difficulty of securing qualified workers. The flash services sector PMI dropped in June. But it was still the second highest on record.