By Paul Hannon

Business activity picked up pace in the U.S. this month, business surveys showed Friday, reaching its highest level in more than two years.

The S&P Global Flash U.S. Composite PMI--which gauges activity in the manufacturing and services sectors--rose to 54.6 in June from 54.5 in May, marking a 26-month high. A level over 50 indicates expansion in private-sector activity.

The measure for the manufacturing sector increased to 51.7 from 51.3 a month earlier, while the services measure increased to 55.1 from 54.8 on the index, both outstripping economists' expectations, according to Wall Street Journal polls.

Despite the pickup in activity, businesses said they increased the prices they charge at the slowest pace in five months, while reporting that the prices they paid for raw materials and other inputs also cooled.

The Federal Reserve has moved to dial down expectations for rate cuts, which had previously been expected to start this summer, until price rises ease sustainably.

Write to Paul Hannon at

(END) Dow Jones Newswires

06-21-24 1020ET