ISM Services PMI At 4-Month Low in Jun

US JUN ISM SERVICES PMI 60.1 VS 64.0 MAY

US ISM SERVICES BUSINESS INDEX 60.4 JUN VS 66.2 MAY

US ISM SERVICES EMPLOYMENT INDEX 49.3 JUN VS 55.3 MAY

US ISM SERVICES NEW ORDERS 62.1 JUN VS 63.9 MAY

US ISM SERVICES SUPPLIER DELIVERIES 68.5 JUN VS 70.4 MAY (NSA)

• The ISM Services PMI declined 3.9pt to 60.1 in Jun, coming in weaker than markets expected (BBG: 63.4) and marking the lowest level since Feb 2021.
• Jun's downtick was broad-based with every major category posting a decline, led by Employment which fell 6pt to 49.3, its first reading below the 50-mark since Dec 2020.
• The Business Activity index declined 5.8pt in Jun, while New Orders and Supplier Deliveries fell 1.8pt and 1.9pt, respectively.
• Among the other categories, Exports showed the largest decline, down 9.3pt to 50.7, its lowest level since Jan.
• While Inventory Sentiment ticked down 3.3pt to 37.2, Inventories eased 1.6pt to 49.9 and Prices edged down 1.1pt to 79.5, which is still a very high level.
• Imports jumped 7.8pt to 58.2 in Jun, posting the highest level since Apr 2013, while Order Backlogs rose 4.7pt to a record high of 65.8.