Fiper | ISM Services PMI

The ISM Non-Manufacturing Index determines the activity level of purchasing managers in the services sector, and a reading above 50 indicates expansion. To get a reading of this indicator, purchasing managers determine the level of some elements in this sector, including employment, production, new orders, resource allocation, and inventories.

The ISM Services Purchasing Managers' Index fell to 55.3 in June 2022 from 55.9 in May, but continued to indicate solid growth for the services sector, exceeding market expectations of 54.3. The slight slowdown was due to softer new orders (55.6 vs. 57.6) and lower employment (47.4 vs. 50.2) while business activity rose faster (56.1 vs. 54.4) and price pressures eased for a second month (80.1 vs. 82.1). At the same time, stocks contracted for the first time since January 2022 (47.5 vs. 51). However, the outlook remains tough as “logistical challenges, a constrained labor pool, material shortages, inflation, the coronavirus pandemic and the war in Ukraine continue to negatively impact the services sector,” according to Anthony Neves, head of the ISM Services Business Survey Committee. . The inventory sentiment index (46.2 vs. 44.5) contracted in June for the fourth consecutive month, indicating that inventories are in "too low" territory and insufficient for current business requirements.