ISM US June Services Index Posts Larger-Than-Expected Increase

10:19 AM EDT, 07/03/2025 (MT Newswires) -- The Institute for Supply Management's US services index rose to a reading of 50.8 in June from 49.9 in May, compared with expectations for a smaller increase to a reading of 50.6 in a survey compiled by Bloomberg as of 7:45 am ET.

The ISM's reading indicates expansion, which is in contrast with most of the regional Federal Reserve bank measures but in line with the Kansas City Fed and the S&P Global measure that indicated expansion.

There were gains in the readings for new orders and production, but declines in the employment and prices readings.

The monthly national services reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.

An increase in the index further above 50 is considered a sign of a strong US services sector and would be a positive for service-sector stocks. Rising prices would normally be a negative for both stocks and bonds.

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