On Tuesday, a survey data from the Tempe, Arizona-based Institute of Supply Management (ISM) - the world’s largest supply management association – had unveiled that the US service sector activities grew by a moderate pace in June following a record reading in May, as a persistent shortage in the labour market coupled with a lag in raw materials alongside widespread supply chain disruptions appeared to have weighed heavily.
In point of fact, latest ISM survey data revealing a modest service sector activity, came against the backdrop of a robust reopening of the US economy with more than 150 million people fully inoculated against the pandemic contagion, which in effect had rotated off demands towards services from goods.
Nonetheless, a larger-than-anticipated decline in ISM’s index for US national service sectors’ activities in June had been largely catalysed by a relentless drawdown in labour market as beforementioned with ISM’s index of service employment having been slumped to a reading of 49.3 in June from a figure of 55.3 a month earlier.
Tempe’s ISM says US service sectors activity moderates in June
Concomitantly, according to a survey data from the Tempe, Arizona-based world’s largest supply chain association, the Institute of Supply Management’s index for US non-manufacturing activity PMI (Purchasing Managers’ Index) faltered to a reading of 60.1 in June after spiking to an all-time high of 64.0 in May, missing an analysts’ estimate of a reading of 63.5, mostly held back by a steep shortage in labours alongside raw materials.
However, several analysts had expressed cautious optimism following the ISM survey data saying that there might be a gradual healing in labour market lurking around the corner with US employment soared to the strongest in ten months in June.