The U.S. services sector showed a mild loss of momentum in June 2026, as the ISM Non-Manufacturing Purchasing Managers’ Index (PMI) eased to 54.0 from 54.5 in May. The latest reading, updated on 6 July 2026, still indicates expansion in the services economy, but points to a modest cooling in activity compared with the previous month.
Despite the slight decline, the index remains comfortably above the 50-point threshold that separates expansion from contraction. This suggests that services — a core driver of U.S. growth — continue to grow, albeit at a somewhat slower pace. Investors and analysts are likely to interpret the move as a sign of steady, though not accelerating, demand in the non-manufacturing sector.
With markets closely tracking the trajectory of U.S. economic data, the small step down in June’s PMI may feed into expectations about the durability of the current expansion and future policy moves, while reinforcing the view that the services sector remains on a solid, if moderating, growth path.
