US ISM Services PMI fell sharply from 53.8 to 48.8 in June, well below expectation of 52.5. That’s also the worst reading in four years. Looking at some details, business activity/production fell sharply from 61.2 to 49.6. New orders fell from 54.1 to 47.3. Employment fell from 47.1 to 46.1. Prices fell slightly from 58.1 to 42.9.
ISM said: “The past relationship between the Services PMI and the overall economy indicates that the Services PMI for June (48.8 percent) corresponds to no increase in real gross domestic product (GDP) on an annualized basis.”
