The ISM non-manufacturing index came in at 52.2 for the month of June, lower than 53.7 registered in May. This reading was also lower than consensus expectation of 54.0.
According to the report from the Institute for Supply Management: “Economic activity in the non-manufacturing sector grew in June for the 42nd consecutive month…. Respondents' comments are mixed about business conditions depending upon the industry and company. The majority indicate that growth has been slow and incremental; however, it is still better year over year."
Here are further details from the report:
· The Non-Manufacturing Business Activity Index registered 51.7, down from 56.5 in May;
· The New Orders Index decreased to 50.8 from 56.0;
· The Employment Index increased 54.7 from 50.1;
· The Prices Index increased to 52.5 from 51.1.
While a reading above 50 signals expansion, the report shows that the growth was the lowest since February 2010.
Employment reading was the only bright spot in this report, and was in-line with the positive tone of jobs data reported earlier this morning.