U.S. Services PMI Slows but Maintains Growth in June

Economic activity in the United States services sector expanded last month for the thirteenth consecutive month, data by the Institute for Supply Management (ISM) showed on Tuesday.

The Services Sectors Purchasing Managers’ Index (PMI) declined by 3.9% points to 60.1% in June compared with its reading in May, which was at an all-time high of 64%.

The Business Activity Index registered 60.4%, while the New Orders and Employment indices came at 62.1% and 49.3%, respectively, and the Supplier Deliveries Index reached 68.5%.

Survey respondents said that restaurants are quickly returning to their 2019 sales levels.

“Strong consumer demand for dining out is clearly evident as COVID-19 restrictions ease, but the challenges are supply chain outages, logistics delays and employee- and management-staffing constraints.”

Meanwhile, the report pointed to severe supply chain disruptions and inflation continuing in the marketplace in all sectors.