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Markit’s Composite Purchasing Managers Index has continued to recover, rising to 46.8 in mid-June from 37.0 in May. This is well off the low of 27 set in April. While it still shows the economy is in contraction (below 50.0), there is clearly a slowdown in the rate of contraction. The improvement was more pronounced in manufacturing than services, and it was evident both domestically and abroad. Still, the survey results indicate further job cuts, but at a more modest rate. For the first time since February, firms recorded higher input costs,