The U.S. non-manufacturing sector slowed more than expected in June,
but employment prospects improved, according to data released Thursday
by the Institute for Supply Management.
The ISM's non-manufacturing purchasing managers' index came in at 52.1
last month, from 53.7 in May.
Forecasters surveyed by Dow Jones Newswires had expected last month's
PMI to fall to 53.0. Readings above 50 indicate activity is expanding.
The non-manufacturing index has been in expansion territory for more
than two years.
The expansionary report from the non-manufacturing sector--comprised
mostly of services--helps to lessen the recession worries triggered by
Monday's ISM report on the factory sector. That report showed
manufacturing activity contracted last month and orders plunged.
Within non-manufacturing, the ISM subindexes in June generally were mixed.
Importantly, the employment index rose to 52.3 after it had fallen
sharply to 50.8 in May from 54.2 in April.
The improving ISM employment index follows another good jobs indicator
released earlier Thursday. The ADP survey beat expectations, showing
the private sector added 176,000 jobs in May and the service sector
created 160,000 positions.
Also within the ISM survey, the business activity/production index
fell sharply to 51.7 from 55.6 in May, while the new orders index
slowed to 53.3 from 55.5.
Price pressures dropped again last month. The prices index declined to
48.9 from a contractionary 49.8 in May.
The ISM non-manufacturing report is comprised mainly of comments from
service-sector companies that make up the bulk of the U.S. economy,
but it also includes construction and public administration.
Write to Kathleen Madigan at kathleen.madigan@dowjones.com
(END) Dow Jones Newswires
July 05, 2012 10:45 ET (14:45 GMT)
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