U.S. Services-Sector Activity Continued to Expand in June — ISM

By Jessica Coacci

U.S. services-sector activity continued to expand last month, a survey of managers has found.

The Institute for Supply Management's purchasing managers index for services providers was 54 in June compared with 54.5 in May. Economists polled by The Wall Street Journal expected a reading of 54.3. A reading above 50 signifies economic growth, while one below 50 indicates contraction.

The new-orders index continued to expand at a slightly slower pace than in May. The supplier-deliveries index was in its 19th consecutive month of expansion territory, indicating slower supplier delivery performance, the report said.

The prices index decreased to 67.7 in June, its first time below 70 since February. Diesel, gasoline, oil and related commodities were once again most frequently mentioned as up in price in June--and cited as down in price from other respondents, said the report.

Meanwhile, the employment index expanded for the first time in four months.

"Respondents in June commented less frequently about pricing impacts on petroleum products, while tariff impacts continued to be a theme for increased pricing pressure," said Steve Miller, chair of the ISM.

Write to Jessica Coacci at jessica.coacci@wsj.com