ISM non-manufacturing index increases by less than expected in June, but details remain somewhat constructive

The Institute of Supply Management (ISM) non-manufacturing index rose by 0.3 points to 56.0 in June, slightly below the median consensus forecast which called for a stronger gain to 56.4.  

"Details of the report were mixed, with business activity (+2.0 points to 61.5) and new orders (+0.4 points to 58.3) recording gains on the month, while the employment (-2.6 points to 52.7) and prices paid (-2.9 points to 53.0) subcomponents each recording sizeable declines", says TD Economics.

After seasonally adjusting, the change in inventory subcomponent rose by 3.0 points to 52.3 - ending two months of shortages.  Of the 18 non-manufacturing industries surveyed, 15 reported growth and only 3 (mining; construction; and other services) reported having contracted in June, notes TD Economics.