FX.co ★ US Services Sector Returns to Growth: ISM

In June 2025, the ISM Services PMI inched up to 50.8, a modest increase from May's 49.9, and slightly surpassed the anticipated figure of 50.5. This suggests that the services sector experienced a rise in economic activity following a brief period of contraction. However, firms frequently cited slow growth and economic uncertainty. Notable upturns were observed in business activity and production, which climbed to 54.2 from 50, new orders rising to 51.3 from 46.4, inventories increasing to 52.7 from 49.7, and new export orders advancing to 51.1 from 48.5. Simultaneously, there was a slight reduction in price pressures, with the index decreasing to 67.5 from 68.7, albeit more frequent mentions of cost-related price hikes were reported. Middle East tensions emerged as a new discussion point this month, although no related supply chain disruptions were noted. The survey respondents continued to predominantly express concerns over tariff impacts. Furthermore, there was a continued decrease in the backlog of orders, declining to 42.4 from 43.4, while supplier delivery performance also saw a slowdown, dropping to 50.3 from 52.5.