US ISM Services PMI Remains Positive in June Despite Minor Dip

The ISM Services PMI for June slipped slightly from 54.5 in May to 54.0, missing the 54.2 consensus but remaining safely above the 50 line that signals economic expansion. The figures confirm that the services sector continues to grow, albeit with a modest easing in activity and demand relative to the previous month.

Key components of ალ the index reflected this slight slowdown: Production activity fell from 57.7 to 55.4, and new orders slipped from 57.3 to 55.1. These shifts suggest that growth remains solid, though momentum has moderated.

In contrast, employment rebounded strongly. The Employment Index rose from 47.9 to 51.2, marking the first expansion‑reading in four months and indicating that hiring pressures have eased.

Price pressures are also softening. The Prices Index fell from 71.3 to 67.7, the lowest level since February, yet it remains above 60 for the 19th consecutive month. Respondents reported lower gasoline and diesel costs, though petroleum‑related products continue to trade at elevated prices due to earlier oil supply disruptions. Those pressures are expected to ease later this year if the recent improvements in oil flow through the Strait of Hormuz continue.

Indicator
Previous
Latest
Expectation

ISM Services PMI
54.5
54.0
54.2

Key Components

Component
Previous
Latest
Comments

Business Activity / Production
57.7
55.4
Growth moderated but remained above its 12-month average of 55.1

New Orders
57.3
55.1
Demand eased but continued to expand

Employment
47.9
51.2
Returned to expansion for the first time in four months

Prices
71.3
67.7
Lowest since February; still above 60 for the 19th consecutive month

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