Summary The pullback in the June ISM Services index from its record high last month is illustrative of the fiscal and reopening tailwinds beginning to fade. Bottlenecks show tentative signs of easing and eventually allaying some price pressures, but have a long way to go before looking anything like “normal”. Supply-Constrained ISM Still Points to Hot Activity this Summer After indicating a record pace of expansion last month, the ISM Services index slipped nearly four points in June. At 60.1, the index is consistent with activity remaining hot this summer, but points to fiscal and reopening tailwinds beginning to ease. The slower pace of services activity in June can be traced in part to weaker growth in current activity (down 5.8 points to 60.4) and new orders (down 1.8 points to 62.1), but supply issues, particularly for labor, continued to restrain the overall pace of growth. READ FULL ARTICLE>>
