US ISM services PMI edged down to 54 in June from 54.5 in May, marking the 24th
consecutive month of expansion, the ISM services report showed. The business
activity index fell to 55.4 from 57.7. The prices index declined to 67.7 from
71.3, slipping below 70 for the first time since February; it has stayed above
60 for 19 months and its 12-month average is 68. Diesel, gasoline and oil were
again the most-cited input-price risers, though some respondents reported price
declines—attributed to differing contract terms across firms—and a subset said
gasoline and diesel purchase prices have fallen, not universally. The ISM
committee said oil-price pass-through to supply chains is likely to persist for
several months but could ease by autumn if recent improvements in Strait of
Hormuz shipping hold.
