PARIS (Reuters) – U.S. service sector activity grew faster than expected in June on a rebound in new orders, while the index measuring prices paid by businesses fell to a more than three-year low, suggesting a continued decline in inflationary pressures in this sector, which is closely watched by the US Federal Reserve (Fed).
The ISM services index, which represents more than two-thirds of the US economy, came out last month at 53.9 against 50.3 a month earlier. The threshold of 50 separates growth and contraction of activity.
Economists polled by Reuters on average expected a figure of 51.0.
The component of new orders received by service companies rose from 52.9 in May to 55.5 in June, thanks in particular to a strong increase in exports.
That on the prices paid by companies in the sector for input products fell to 54.1, the lowest level since March 2000, against 56.2 in May.
Despite the jump in demand, inflation in services continues to decelerate, which could relieve the Fed in its medium-term objective of limiting price increases to 2%.
The Fed has raised its interest rates by a total of 500 basis points since March 2022, the fastest pace in more than forty years, thus bringing the “fed funds” target to 5.00%-5.25 %.
Employment in the services sector, however, rebounded in June, to 53.1 from 49.2 previously, as the Labor Department is due to release its official monthly report on job creations, the unemployment rate and the unemployment rate on Friday. wages.
(Edited by Claude Chendjou, edited by Kate Entringer)
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2023-07-06 14:34:59
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