US Services Sector Rebounds but Employment Contracts Again
U.S. services sector activity picked up in June as orders rebounded, but employment contracted for the third time this year, underscoring the impact of policy uncertainty on businesses.
The Institute for Supply Management (ISM) said on Thursday that its nonmanufacturing purchasing managers index (PMI) increased to 50.8 last month from 49.9 in May. Economists polled by Reuters had forecast the services PMI rising to 50.5. A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy.
Economists say businesses are in limbo over the uncertainty about what happens after President Donald Trump's 90-day pause on higher reciprocal tariffs expires next week....
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