US services sector expands in June for 6th consecutive month

There is increase in business activity, new orders, employment, says ISM chair

By Ovunc Kutlu

ISTANBUL (AA) - Economic activity in the US services sector expanded in June for a sixth consecutive month, according to a report released Thursday by the Institute for Supply Management (ISM).

The ISM's non-manufacturing purchasing managers’ index (PMI), also known as the ISM services PMI, came in at 53.9% -- 3.6 percentage points lower than the reading in May of 50.3%.

Analysts expected the index, which indicates the overall economic condition of the services sector, to post a 51.0% reading.

A reading above 50 indicates growth and below that shows contraction.

The US services sector has grown in 36 of the last 37 months, with the lone contraction in December, according to the ISM. The index hit an all-time high of 69.1% in November 2021.

"Fifteen industries reported growth in June," ISM Chair Anthony Nieves said in the report, adding "There has been an uptick in the rate of growth for the services sector. This is due mostly to the increase in business activity, new orders and employment."

"The majority of respondents indicate that business conditions remain stable; however, they are cautious relative to inflation and the future economic outlook," he said.


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