The U.S. services sector expanded at a faster pace in June as the non-manufacturing business activity composite index was 56.5 in the month, compared to 52.9 in May, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
Economists polled by Thomson Reuters had expected a 53.3 level.
The prices paid index dipped to 55.5 from 55.6.
The employment index rose to 52.7 from 49.7.
The business activity/production index gained to 59.5 from 55.1, the new orders index was at 59.9, up from 54.2; backlog of orders dropped to 47.5 from 50.0; new export orders increased to 53.0 from 49.0; inventories climbed to 55.5 from 54.0; inventory sentiment rose to 62.5 from 60.0; the supplier deliveries index grew to 54.0 from 52.5; and imports increased to 54.0 from 53.5.
Members' general comments on business in the month included:
- "Business is generally good and following historical seasonal patterns. Suppliers report being very busy compared to last year." (Management of Companies & Support Services)
- "Business is strong in the private sector; bidding a lot of commercial buildings." (Construction)
- "Slightly greater activity, specifically due to midyear reporting." (Finance & Insurance)
- "Oil prices seem to be stabilizing in the $48/bbl. range which has eased the panic in the industry over falling prices." (Mining)
- "Overall business appears to have flattened out. New business for the next six months looks good according to sales forecasts." (Professional, Scientific & Technical Services)
- "Steady movement with negligible fluctuations both up and down." (Public Administration)
- "Business was slow, but starting to pick up this month." (Retail Trade)
- "More new business." (Utilities)
- "Oil, gas, steel [and] coal mining continues to drag down revenues. Automotive, food, package handling and airports [are] strong." (Wholesale Trade)
- "Overall business conditions are good, even though growth is flat." (Health Care & Social Assistance)
