ISM Services PMI Falls to Lowest Level Since May 2020

The Institute of Supply Management (ISM) has released its Juneservices purchasing managers' index (PMI). The headline composite index is at 48.8, coming in below the 52.8 forecast. The latest reading is the lowest level for the index since April 2022 and moves the index back into contraction territory for the second time in the past three months.

Here is an excerpt from the report summary:

Miller continues, “The decrease in the composite index in June is a result of notably lower business activity, a contraction in new orders for the second time since May 2020 and continued contraction in employment. Survey respondents report that in general, business is flat or lower, and although inflation is easing, some commodities have significantly higher costs. Panelists indicate that slower supplier delivery performance is due primarily to transportation challenges, not increases in demand.”

Unlike its much older kin, the ISM manufacturing series, there is relatively little history for ISM's non-manufacturing data, especially for the headline composite Index, which dates from 2008. The chart below shows the non-manufacturing composite.

ISM Services PMI