ISM services PMI jumps past forecasts in June
By Alexander Bueso
Date: Monday 06 Jul 2020
(Sharecast News) - Activity in America's services sector rebounded with 'gusto' in June, far surpassing economists' forecasts, the results of a closely-followed survey revealed.
The Institute for Supply Management's services sector Purchasing Managers' Index rocketed from May's reading of 45.4 to 57.1, coming in well ahead of the 50.0 point consensus forecast.
To take note of, the 50.0-point mark denotes the threshold between an expansion and contraction in overall activity.
According to ISM, based on the past relationship between the PMI and US gross domestic product, June's reading was consistent with an annualised pace of GDP growth of 2.9%.
A gauge tied to levels of output registered the largest increase, jumping from 44.0 to 66.0, while that for new orders improved from 41.9 to 61.6.
Another sub-index linked to employment in the sector on the other hand rose from 31.8 to 43.1 but remained well below the breakeven level.
Price pressures also picked up notably, with the sub-index tracking them jumping from 55.6 to 62.4.
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