US June ISM services index 50.8 vs 50.5 expected

68.7 prior

Comments in the report:

• “Restaurant sales and traffic remain flat to prior year. Staffing is
  adequate for our current needs, and no supply chain concerns this
  month.” [Accommodation & Food Services]
• “Increased cost from tariffs and the potential for tariffs is
  impacting cost increases. Higher cost of high-dollar items like
  150-horsepower farm tractors are forcing farmers to delay purchasing or
  purchase used equipment. Tension in the Middle East is creating great
  concern and uncertainty.” [Agriculture, Forestry, Fishing & Hunting]
• “Sales remain stubbornly slow due to affordability issues with
  higher mortgage rates and high property values. Residential construction
  has embarked on cost-cutting measures through value engineering,
  supplier margin reductions and layoffs.” [Construction]
• “Prices have gone up from tariff recovery fees — separate line items
  — but the supply chain, deliveries and inventories have remained mostly
  stable after the initial disruption. Costs continue to increase across
  the board, so our goal is to mitigate that.” [Health Care & Social
  Assistance]
• “General uncertainty around the economy continues to drive increases
  in prices. Also, lots of SaaS (software-as-a-service) vendors are using
  the AI (artificial intelligence) boom to restructure pricing and
  products, resulting in massive increases.” [Information]
• “After several slow months, business is starting to increase. New requests are going out to suppliers.” [Other Services]
• “Confidence in a predictable economic environment has eroded to a
  point where capital investments are being severely curtailed.”
  [Professional, Scientific & Technical Services]
• “Business growth is slow. Global economic conditions impacted by
  U.S. tariffs are creating significant uncertainty, which is holding
  businesses back from making short- to medium-term business decisions.”
  [Real Estate, Rental & Leasing]
• “Lead times are extending in the past month or two. Seeing
  high-single- or low-double-digit percent increases in pricing on metals
  related to commodity hardware and products.” [Utilities]
• “Business seems to be picking up. Many of the macroeconomic factors
  that were concerning look to be playing out in our favor. High interest
  rates are still a problem
  US June ISM services index 50.8 vs 50.5 expected