Banking

ISM: Service Sector Growth Continues in June | ABA Banking Journal

The ISM Services Index registered 60.1% in June; 3.9 percentage points lower than the May reading of 64%. This reading represents the thirteenth straight month of growth for the services sector, which has expanded for all but two of the last 137 months.

Sixteen non-manufacturing industries reported growth. Survey respondents noted “the rate of expansion in the services sector remains strong, despite the slight pullback in the rate of growth from the previous month’s all-time high. Challenges with materials shortages, inflation, logistics and employment resources continue to be an impediment to business conditions.”

The Business Activity Index registered 60.4% in June, a decrease of 5.8 percentage points from the May reading of 66.2%. This represents growth for the thirteenth consecutive month.

Service sector employment fell in June for the first month after five consecutive months of growth, and registered 49.3% in June, down from the May reading of 55.3%. Twelve industries reported growth in employment for the month.

The New Orders Index was 62.1%, a decrease of 1.8 percentage points from the May reading of 63.9%.  Comments from respondents include: “More traffic at our locations, resulting in more service” and “Elective surgeries continuing to grow and fill the schedule.”

Supplier deliveries remained slow, as the index registered 68.5%, which is 1.9 percentage points lower than the 70.4% reported in May. A reading above 50% indicates slower deliveries.

Read the ISM release.

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