US ISM Services PMI bounced back into expansion territory in June, rising to 50.8 from 49.9 in May, and slightly ahead of expectation of 50.3. While the headline marked a return to growth, it remained below the 12-month average of 52.4.
Looking at some details, new orders jumped to 51.3 from 46.4, suggesting some revival in demand, while business activity improved from 50.0 to a solid 54.2. However, others details of the report were more mixed. The employment component slumped to 47.2 from 50.7y, signaling contraction in service-sector hiring. Prices paid remained elevated at 67.5, marking the seventh straight month above 60.
According to ISM, the June PMI level implies an annualized GDP growth of around 0.7%.
