US June ISM services 53.9 vs 51.0 expected

<ul><li>Prior was 50.3</li></ul><p>Details:</p><ul><li>employment index 53.1 versus 49.2 prior</li><li>new orders index 55.5 versus 52.9 expected</li><li>prices paid index 54.1 versus 56.2 prior </li><li>new export orders 61.5 versus 59.0 last month</li><li>imports 54.6 versus 50.0 last month</li><li>backlog of orders 43.9 versus 40.9 last month</li><li>inventories 55.9 versus 58.3 last month</li><li>supplier deliveries 47.6 versus 47.7 last month</li><li>inventory sentiment 54.0 versus 61.0 last month</li></ul><p>You could see this one coming after the S&amp;P Global survey and ADP. That may have limited the market reaction, though we're still at highs in the US dollar and lows in equities.</p><p>Comments in the report:</p><ul><li>“Stabilizing inflation rates are helping our overall situation.
(High inflation has) done much to disrupt our pricing for services and
rent over the past two years.” [Agriculture, Forestry, Fishing &amp;
Hunting]</li><li>“We have been very busy in June, with great content coming out of
the studios and the summer guest traffic.” [Arts, Entertainment &amp;
Recreation]</li><li>“Monitoring China’s anti-espionage legislation going into effect on
July 1 that may have an impact on normal supply chain business
operations like market research, recruitment, trade secret leakage,
employing former government officials and data sharing between Chinese
and foreign companies in joint domestic or cross-border projects,
including transfer of technology or information sharing.” [Construction]</li><li>“General business conditions are still active and steady. We’re
ramping up for a busy third quarter with some expansion and preparations
for early 2024 capital projects.” [Finance &amp; Insurance]</li><li>“Strong procedural volumes are driving above-budget revenue
performance, but profitability continues to suffer due to higher
expenses. Inflationary pressures, staffing challenges, limited capacity
and insufficient payer rates continue to financially challenge the
health system. Supply chains continue to moderately improve.” [Health
Care &amp; Social Assistance]</li><li>“Supply chain lead times have stabilized and prices are holding or,
in some cases, dropping slightly. It’s been a long time coming.”
[Information]</li><li>“Our company is maintaining an overall cautious approach, with
inflation and the economy as main concerns. With oil prices stabilizing
at around (US) $70 a barrel, we hope they start refilling the Strategic
Petroleum Reserve to replace the oil withdrawn via emergency-use release
during the pandemic.” [Management of Companies &amp; Support Services]</li><li>“Increased demand for new transformation programs, with prices
holding and an increase in clients’ capital budget allocations.”
[Professional, Scientific &amp; Technical Services]</li><li>“Business remains higher than a year ago but is falling short of forecasts and projections.” [Real Estate, Rental &amp; Leasing]</li><li>“Overall business conditions are good, but growth is at a slow pace.” [Retail Trade]</li><li>“Labor rates continue to be a challenge even with more people
looking to return to work. Inflation is most likely a cause for this.
Some incremental lower pricing on food.” [Transportation &amp;
Warehousing]</li><li>“High operational expenses continue to put pressure on our business
and limit hiring. Service levels from suppliers continue to improve.
Trucking metrics and sales also improved.” [Wholesale Trade]</li></ul>

This article was written by Adam Button at www.forexlive.com.