The US composite index sits at 54.8, 0.2 points above the estimated June flash estimate (54.6) and 0.3 points higher than May (54.5). This signals that the economy, based at least on this survey, is expanding at a faster rate than in May. This is the fastest increase since April 2022.

The service index is 55.3, 0.2 points above the June flash (55.1) and 0.5 points higher than in May (54.8). This likewise signals that the service industry is expanding at a faster rate than in May. Business activity has now risen in each month for the last 17 months, with this latest expansion the largest since April 2022.

Gains are due to an increase in customer numbers and greater volumes of new orders. More new orders lead to an increase in employment. Inflation remains high and as a response to higher operation costs, firms have raised their service prices. Still, the rates of both input cost and output price inflation eased slightly from May.

The US RPI now stands at plus 3 and RPI-P at plus 4, both showing economic activity in general is within market forecasts.

No change at the mid-month's 55.1 is the consensus for the services PMI's June final. This index ended May at 54.8.

US Services Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys collected from over 400 U.S. companies which provide a leading indication of what is happening in the private sector services economy. It is seasonally adjusted and is calculated from seven components, including New Business, Employment and Business Expectations.

Investors need to keep their fingers on the pulse of the economy because it indicates how various types of investments will perform. The Markit Services PMI provides advance insight into the services sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of various markets. The stock market likes to see healthy economic growth which generally translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.

The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.