Service-sector strength improved in June, to 54.2 vs the mid-month flash of 53.0 and May's final reading of 53.6. Gains for new orders, the best since January, are behind the strength as is hiring which is the best since February. Another positive is a rise in confidence in future activity, posting the second best reading in more than 2 years. Price data show increases for inputs, reflecting higher raw material and staffing costs, and also positive traction for selling prices tied to stronger demand.
This report is solidly positive and points to quarter-end momentum for the economy in general. The final composite PMI, which includes manufacturing, came in at 53.9 vs 53.0 at mid-month and 53.6 in May. Up next is ISM's non-manufacturing report which has been running stronger than the services PMI.