US June ISM Services PMI Falls to 54.0, Misses Forecast
Summary
- The US June ISM Non-Manufacturing PMI came in at 54.0, slightly below the forecast of 54.2 and the previous reading of 54.5.
- The US June Services PMI and Composite PMI both missed expectations, suggesting growth momentum eased somewhat.
- Markets will look to the FOMC minutes and initial jobless claims due later this week for further clues on the Fed's future interest-rate path.
Forecast Trend Report by Period
US services-sector activity in June came in below market expectations.
The Institute for Supply Management's non-manufacturing purchasing managers index, or ISM services PMI, stood at 54.0 in June, according to data released on July 6. That was slightly below the consensus forecast of 54.2 and down from 54.5 in May.
The ISM non-manufacturing PMI is a key gauge of business conditions in the US services sector. A reading above 50 indicates expansion, while a reading below 50 signals contraction.
The latest figure showed the sector remained in expansion territory, but came in below both the previous month and market expectations. That suggests US services activity remains resilient, even as growth momentum has eased somewhat.
Earlier data showed the US June services PMI at 51.2, slightly below the forecast of 51.3. The composite PMI rose to 51.9 from 51.5 the previous month, but fell short of expectations for 52.2.
Markets will look later this week to minutes from the Federal Open Market Committee and initial jobless claims for further clues on the Federal Reserve's interest-rate path.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.