Updated: 03-Jul-24 10:50 ET

June ISM Non-Manufacturing Index

Updated: 03-Jul-24 10:50 ET

Highlights

• The ISM Non-Manufacturing Index decreased to 48.8% in June (Briefing.com consensus 52.5%) from 53.8% in May.
• The dividing line between expansion and contraction is 50.0%, so the June reading reflects services sector activity contracting (for the second time in the last three months).

Key Factors

• The Business Activity/Production Index fell to 49.6% from 61.2%.
• The New Orders Index dropped to 47.3% from 54.1%.
• The Employment Index slipped to 46.1% from 47.1%.
• The Prices Index dipped to 56.3% from 58.1%.
• The Suppliers Deliveries Index fell to 52.2% from 52.7%.
• The Backlog of Orders Index dropped to 44.0% from 50.8%.

Big Picture

• The key takeaway from the report is that it signals a contraction in activity in the nation's largest sector, which should reinforce the market's expectation that the Fed will start cutting rates before the end of the year.

Category	JUN	MAY	APR	MAR	FEB
Non-Manufacturing ISM index	48.8	53.8	49.4	51.4	52.6
Business Activity	49.6	61.2	50.9	57.4	57.2
New Orders	47.3	54.1	52.2	54.4	56.1
Employment	46.1	47.1	45.9	48.5	48.0
Deliveries (nsa)	52.2	52.7	48.5	45.4	48.9
Inventories (nsa)	42.9	52.1	53.7	45.6	47.1
Exports (nsa)	51.7	61.8	47.9	52.7	51.6
Imports (nsa)	44.0	42.8	53.6	52.4	54.3
Prices Paid	56.3	58.1	59.2	53.4	58.6