S&P Global's services PMI rose to 51.2 from 50.7 in May, marking a third consecutive month of expansion. The firm said stabilising economic conditions helped lift new business at the fastest pace since February, supported by new project wins and demand linked to the FIFA World Cup. Domestic demand strengthened, but export orders fell for a seventh straight month amid uncertainty over tariffs and government policy.
Input‑cost inflation remained elevated, driven by labour expenses, tariffs and higher fuel prices, though the overall rate eased to its weakest level since February. Selling‑price inflation stayed historically high. Business confidence improved to its strongest reading since February on hopes of better economic conditions and easing price pressures.
The ISM's services PMI also pointed to continued growth, registering 54%, down slightly from 54.5% in May and extending the sector's expansion streak to 24 months. Its Business Activity Index slipped to 55.4%, while new orders eased to 55.1%, though respondents again cited new project wins and World Cup‑related demand.
Employment improved, with the index rising to 51.2%, but ISM noted that muted conditions continued to discourage hiring, with firms reporting a net loss of jobs for the third time in four months. Backlogs rose for a sixteenth month amid capacity pressures and supply‑chain disruption, and cost inflation remained high despite easing to its weakest level since February.
Reporting by Iain Gilbert at Sharecast.com