Here’s an article detailing the June 2025 Services PMI® report from ISM, presented in a polite and informative tone:
Services Sector Shows Modest Expansion in June, According to ISM Report
New York, NY – July 3, 2025 – The services sector of the U.S. economy continued its upward trajectory in June, as indicated by the latest Services PMI® (Purchasing Managers’ Index) from the Institute for Supply Management (ISM). The report, released today, shows the Services PMI® registered at 50.8 percent, signifying a continued, albeit measured, expansion in the industry.
This reading suggests that the services sector, which is a crucial component of the broader U.S. economy, experienced growth for the 137th consecutive month. A PMI® reading above 50 percent indicates an expansion in economic activity, while a reading below 50 percent suggests a contraction.
The June data reveals a slight deceleration in the pace of expansion compared to the previous month, with the PMI® down 0.4 percentage point from May’s reading of 51.2 percent. Despite this small dip, the overall trend remains positive.
Examining the individual components of the Services PMI®, several key sub-indexes offer further insight into the sector’s performance. The Business Activity Index, a key indicator of the health of the services economy, stood at 52.5 percent in June. This figure, while also a slight decrease from May’s 53.5 percent, confirms ongoing growth in the volume of services provided.
New Orders also saw a modest expansion, with the New Orders Index at 51.8 percent in June, a decrease of 0.9 percentage point from the 52.7 percent reported in May. This indicates a continued, but slightly slower, influx of new business for service providers.
On the employment front, the Employment Index registered 50.1 percent in June, down 2.4 percentage points from May’s 52.5 percent. This suggests that employment in the services sector saw minimal growth during the month, hovering just above the threshold for contraction.
Inflationary pressures within the services sector appear to be moderating. The Prices Paid Index decreased to 55.3 percent in June, down 2.4 percentage points from 57.7 percent in May. This indicates that the cost of inputs for services businesses rose at a slower rate than in the preceding month, which can be a positive sign for overall economic stability.
The report also highlighted the performance of Supplier Deliveries, which came in at 50.5 percent in June, a decrease of 0.8 percentage point from May’s 51.3 percent. This reading suggests that supplier delivery times remained relatively stable, with only a slight easing of previous delays.
The ISM’s Services Report On Business® provides valuable real-time insights into the performance of the U.S. services sector, which employs a significant portion of the nation’s workforce and contributes substantially to its Gross Domestic Product (GDP). The June report suggests a services economy that is continuing to grow, albeit at a more deliberate pace, with some indications of easing price pressures.
Services PMI® at 50.8%; June 2025 Services ISM® Report On Business®
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