Following a significant drop in May, the U.S. services sector expanded slightly in June, according to data from The Institute for Supply Management (ISM). The group’s services sector index increased to 56 last month, mostly in line with forecasts, improving from a reading of 55.7 in May. A reading above 50 indicates expansion in the sector. “The majority of respondents’ comments are positive about business conditions and the economy,” ISM officials wrote in a statement.
The ISM’s index of business activity increased to 61.5 in June, up modestly from the previous mark of 59.5. The firm’s new orders index rose to 58.3, while the ISM’s employment index dropped for a second consecutive month to 52.7, down from 55.3. The index on prices fell to 53, off from last month’s 55.9 reading.
ISM data shows 15 non-manufacturing industries reported growth in June. The only three industries reporting contraction were mining, construction and what ISM terms “other services.”Among key components, only imports (at 48) drew a reading under 50. Imports were down 5.5 points from the 53.5 figure reported in May.
Overall, the services sector has expanded for 65 straight months, according to ISM data. Separately, the final reading of the Markit U.S. services PMI also showed June growth in the sector, coming in at 54.8.