US service-sector survey from Markit
- Third-fastest since data collection began in October 2009
- Prelim was 64.8
- Prior was 70.4
- Composite was 63.7 vs 63.9 prelim and 68.7 prior
- Rates of output and new order growth eased from May's record highs, however, and capacity constraints meant backlogs of work grew at the quickest rate for ten months
- input prices increased at the second-fastest rate on record as supplier price hikes and greater wage bills pushed up cost burdens
- new export orders rose at a strong pace that was only slightly slower than May's recent peak
- output charges increased at the second-steepest rate on record
- New orders at 10 month high
The ISM services survey is due at the top of the hour.
Commenting on the latest survey results, Chris Williamson, Chief Business Economist at IHS Markit, said:
"June saw another month of impressive output growth across the manufacturing and services sectors of the US economy, rounding off the strongest quarterly expansion since data were first available in 2009."The rate of growth cooled compared to May's record high, however, adding to signs that the economy's recovery bounce peaked in the second quarter."Some of the easing in the rate of expansion reflects payback after especially strong expansions in prior months as the economy opened up from pandemic-related restrictions, especially in consumer-facing companies. However, many firms reported that business activity had been constrained either by shortages of supplies or difficulties filling vacancies. Backlogs of uncompleted orders are consequently rising at a rate unprecedented in the survey's history, underscoring how demand is outstripping supply of both goods and services."These capacity constraints are not only stifling growth, but also driving prices sharply higher. June saw the second-steepest rise in average prices charged for goods and services in the survey's 12-year history, though some encouragement can be gleaned from the rate of inflation easing in the service sector compared to May."