- Prelim was 54.1
- Prior was 54.9
- Strong upturn in new orders
- New export orders rose for a second month
- “On the price front, service sector firms saw a marked rise in
cost burdens at the end of the second quarter.” - Composite final PMI 53.2 vs 53.0 prelim
The ISM services survey is due at the top of the hour and hasn’t shown any of the same improvement as the S&P Global report. Time for some catch up?
Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence, said:
“June saw encouraging resilience of the US services
economy, which helped offset a renewed contraction
of manufacturing output to ensure the overall pace of
economic growth remained encouragingly solid. The
surveys signal GDP growth of just under 2% for the
second quarter as a whole, albeit with June seeing some
loss of momentum.
“Demand for services has remained surprisingly buoyant
in the face of headwinds from the increased cost of
living and higher interest rates, with spending still being
supported by a post-pandemic tailwind for spending
by consumers in particular. Higher interest rates and
recent market gains are also boosting demand for some
financial services.
“The worry is that, although selling price inflation has
cooled further, June saw increased cost growth in the
service sector, which has been the main area of inflation
concern in recent months. Higher wages in particular are
driving costs up, and could keep selling price inflation
stubbornly elevated in the months ahead.”