U.S. ISM Services PMI Hits 54 in June, Marking 24th Straight Month of Expansion

U.S. ISM Services PMI data showed the services sector continued to expand in June, with the index at 54 for a 24th consecutive month in expansion territory. According to Jin10, Steve Miller, chair of the ISM Services Business Survey Committee, said the June reading of 54 was down 0.5 points from May’s 54.5. Miller said the business activity index remained in expansion but fell 2.3 points from May’s 57.7 to 55.4. The prices index declined to 67.7 in June, down 3.6 points from May’s 71.3, marking the first time since February that it fell below 70. He added that the prices index has stayed above 60 for 19 consecutive months, with a 12-month average of 68. Miller said diesel, gasoline, oil, and related products were again cited as the items with the largest price increases in June, though other respondents reported price declines. He attributed the differences to varying contract terms across companies for those products. Some respondents said the prices they paid for gasoline and diesel fell, but Miller said this was not widespread. He said ISM expects this situation to persist for several months as higher oil prices pass through supply chains, but it should ease in the fall if recent progress in oil shipments through the Strait of Hormuz continues.