U.S. Services Sector Growth Slows in June 2026 Amid Stabilizing Supply Chains
Event summary
- The ISM Services PMI® registered 54.0% in June 2026, down 0.5 percentage points from May.
- Business Activity and New Orders indexes both declined over 2 percentage points.
- Employment Index expanded for the first time in four months to 51.2%.
- Prices Index dropped to 67.7%, its lowest in four months, signaling easing inflation pressures.
The big picture
The U.S. services sector continues its 24th consecutive month of expansion, though at a slower pace, reflecting broader economic stabilization. The decline in price pressures and improvement in employment metrics suggest supply chains are adapting to post-pandemic demand patterns. However, geopolitical factors like the Strait of Hormuz situation remain wild cards for logistics costs.
What we're watching
- Inflation Trends
- Whether the easing of price pressures in petroleum-related commodities will continue through the fall.
- Employment Dynamics
- How sustained business activity and supply chain stabilization will impact hiring trends across services industries.
- Supply Chain Stability
- The pace at which supplier delivery performance normalizes as geopolitical tensions in the Strait of Hormuz continue to influence logistics.