U.S ISM non manufacturing PMI higher than expected in June

Anthony Nieves, Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee:

"The NMI registered 59.1 percent, which is 0.5 percentage point higher than the May reading of 58.6 percent. This represents continued growth in the non-manufacturing sector at a slightly faster rate. The Non-Manufacturing Business Activity Index increased to 63.9 percent, 2.6 percentage points higher than the May reading of 61.3 percent, reflecting growth for the 107th consecutive month, at a faster rate in June. The New Orders Index registered 63.2 percent, 2.7 percentage points higher than the reading of 60.5 percent in May. The Employment Index decreased 0.5 percentage point in June to 53.6 percent from the May reading of 54.1 percent".

What respondents are saying:

"Tariffs, freight [issues] and labor shortages continue to have an inflationary influence on costs." (Construction)

"Positive outlook - business activity on the uptick." (Finance & Insurance)

"Shortage of IV solutions and drugs continues to be an issue." (Health Care & Social Assistance)

"Crude prices are causing concern, as it is a driver in newsprint inks. Tariffs on paper and aluminum are causing apprehension about future pricing. Suppliers are posturing and threatening price increases, and we are doing our best to reject increases." (Information)

"Trade tariffs are creating price uncertainty." (Management of Companies & Support Services)