by Calculated Risk on 7/06/2021 10:06:00 AM
(Posted with permission). The June ISM(R) Services index was at 60.1%, up from 64.0% last month. The employment index decreased to 49.3%, from 55.3%. Note: Above 50 indicates expansion, below 50 contraction.
From the Institute for Supply Management: June 2021 Services ISM(R) Report On Business(R)
The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management(R) (ISM(R)) Services Business Survey Committee: “The Services PMI registered 60.1 percent, which is 3.9 percentage points lower than May’s all-time high reading of 64 percent. The June reading indicates the 13th straight month of growth for the services sector, which has expanded for all but two of the last 137 months.
“The Supplier Deliveries Index registered 68.5 percent, down 1.9 percentage points from May’s reading of 70.4 percent. (Supplier Deliveries is the only ISM(R) Report On Business(R) index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Prices Index registered 79.5 percent, 1.1 percentage points lower than the May reading of 80.6 percent, indicating that prices increased in June, and at a slightly slower rate.
“According to the Services PMI(R), 16 services industries reported growth. The composite index indicated growth for the 13th consecutive month after a two-month contraction in April and May 2020. 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,” says Nieves.
The employment index decreased to 49.3%, from 55.3% in May.