U.S. Service Sector Growth Unexpectedly Accelerates In June
July 05 2018 - 6:29AM
RTTF2
A report released by the Institute for Supply Management on
Thursday showed growth in activity in the U.S. service sector
unexpectedly accelerated in the month of June.
The ISM said its non-manufacturing index rose to 59.1 in June
after climbing to 58.6 in May, with a reading above 50 indicating
growth in the service sector. Economists had expected the index to
edged down to 58.3.
The unexpected increase by the headline index was partly due to
an acceleration in the rate of growth in business activity, as the
business activity index climbed to 63.9 in June from 61.3 in
May.
The new orders index also showed a notable increase, jumping to
63.2 in June from 60.5 in the previous month.
On the other hand, the employment index dipped to 53.6 in June
from 54.1 in May, indicating a modest deceleration in the pace of
job growth in the service sector.
"According to the NMI, 17 non-manufacturing industries reported
growth," said Anthony Nieves, Chair of the ISM Non-Manufacturing
Business Survey Committee.
"Respondents continue to be optimistic about business conditions
and the overall economy," he added. "There is a continuing concern
relating to tariffs, capacity constraints and delivery."
With regard to inflation, the ISM said its prices index dropped
to 60.7 in June from 64.3 in May, suggesting a slowdown in the pace
of price growth.
The ISM released a separate report on Monday showing growth in
activity in the U.S. manufacturing sector also unexpectedly
accelerated in the month of June.
The report said the purchasing managers index climbed to 60.2 in
June after rising to 58.7 in May. Economists had expected the index
to edge down to 58.4.
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Mar 2024 to Apr 2024
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Apr 2023 to Apr 2024
