7/6, 4:01 PM (Source: TeleTrader)
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US services sector growth decelerates in June - ISM

The growth of the services sector in the United States slowed down in June despite growing for the 25th month in a row, the Institute for Supply Management (ISM) revealed in its report published on Wednesday. The ISM Services Purchasing Managers' Index (PMI) came in at 55.3 percent, observing a monthly drop of 0.6 percentage points and coming in at its lowest level since May 2020 but still exceeding expectations.

On the other hand, the Business Activity Index stood at 56.1%, which is 1.6 percentage points higher than in May. Meanwhile, the New Orders Index saw a monthly decline of 2 percentage points, landing at 55.6%. The Employment Index also declined and contracted, going down by 2.8 percentage points to 47.4%.

"The slight slowdown in services sector growth was due to a decline in new orders and employment. [...] Logistical challenges, a restricted labor pool, material shortages, inflation, the coronavirus pandemic and the war in Ukraine continue to negatively impact the services sector," ISM Services Business Survey Committee Chair Anthony Nieves commented on the report.

Baha Breaking News (BBN) / JR