US ISM non-manufacturing composite rose to 59.1 in June, up from 58.6 and beat expectation of 58.0. Business activity rose 2.6 to 63.9. Employment, however, dropped 0.5 to 53.6.
Some quotes from respondents:
“Tariffs, freight [issues] and labor shortages continue to have an inflationary influence on costs.” (Construction)
“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)
“Domestically, we are still experiencing a shortage of transportation providers that is getting worse each month when retiring drivers or drivers moving into other opportunities are not being replaced. Internationally, there is a shortage of flat racks [that] has caused late shipments. The tariffs on steel and aluminum have also had some negative effects on our supply of material, but we have applied for exemptions.” (Other Services)
