The U.S. services sector showed signs of renewed hiring momentum in June, as the ISM Non-Manufacturing Employment Index climbed back into expansion territory. The gauge rose to 51.2 in June 2026, up from 47.9 in May 2026, according to data updated on 06 July 2026.
May’s reading below the 50 threshold had pointed to a contraction in employment within the non-manufacturing sector, raising concerns about a softening labor backdrop in services, which make up the bulk of the U.S. economy. The June rebound above 50 suggests businesses in areas such as retail, healthcare, finance, and professional services are once again expanding their workforce.
While the data do not provide detail on the pace or breadth of hiring, the shift from 47.9 to 51.2 indicates a notable improvement in sentiment among service-sector employers over the month, potentially easing some worries about broader labor-market cooling.
