US: ISM Non-Manufacturing Index recovers in June - Wells Fargo

The ISM Non-Manufacturing index rose to 57.4 in June; market consensus pointed to a decline. According to analysts from Wells Fargo, service sector activity appears to be settling at a comfortable pace of expansion.

Key Quotes: 

“The headline ISM non-manufacturing index recovered most of the ground lost in May by rising 0.5 points to 57.4 in June. The rebound largely resulted from small gains across sub-indices."

“The index of business activity gained 0.1 point to 60.8, which signals continued strength in demand for services. Most respondents reported business activity was the same as in May. The only sector to report falling activity was retail trade.”

“The prices paid measure moved back above the demarcation line in June after posting in contraction territory in May. Measures of price pressures have come in soft recently, making this timely gauge an important one to watch in coming months.”