The June ISM Non-Manufacturing PMI came in at 54, essentially unchanged from the previous month, remaining in expansion territory. This indicates that the overall momentum of the US service sector remains stable, serving as the core support for the current economy. Breaking down the sub-indices:
Price Index 67.7 → A significant decline, indicating easing cost and pricing pressures on the service sector.
New Orders 55.1 → A slight decline but still expanding; demand has not weakened but has slowed marginally.
Employment Index 51.2 → Returned to expansion territory; companies have not significantly laid off employees.
For the market, this combination typically corresponds to two changes in expectations:
First, marginal easing of sticky inflationary pressures (especially in the service sector); second, the economy remains resilient but no longer supports a narrative of accelerated growth, moving closer to moderate expansion.
