US service providers expanded slowly in June, thanks to a recovery in business activity and orders, although the employment index recorded its biggest decline in three months. The American Association for Supply Management said on Thursday that its service sector index rose nearly 1 point last month to 50.8. In May, the index contracted for the first time in almost a year. Commercial activity has returned to the expansion range after a month of stagnation. There was also an increase in orders, but at a moderate pace. Coupled with the backlog of orders shrinking at the fastest rate in more than two years, service providers are adjusting the number of employees. The ISM employment index fell 3.5 points to 47.2, the third contraction in the past four months. These data highlight the slowdown in US economic growth so far this year as consumers and businesses are coping with the impact of the Trump administration's trade policies. The indicators for measuring the prices of materials and services declined in June, but are still close to the highest level since late 2022. Meanwhile, service providers' inventories increased in June, while indicators measuring inventory sentiment fell from their highest level since July last year. Although this indicates a decrease in the number of companies that think their inventory is too high, the index is still at its second highest level in almost a year.

US service providers expanded slowly in June, thanks to a recovery in business activity and orders, although the employment index recorded its biggest decline in three months. The American Association for Supply Management said on Thursday that its service sector index rose nearly 1 point last month to 50.8. In May, the index contracted for the first time in almost a year. Commercial activity has returned to the expansion range after a month of stagnation. There was also an increase in orders, but at a moderate pace. Coupled with the backlog of orders shrinking at the fastest rate in more than two years, service providers are adjusting the number of employees. The ISM employment index fell 3.5 points to 47.2, the third contraction in the past four months. These data highlight the slowdown in US economic growth so far this year as consumers and businesses are coping with the impact of the Trump administration's trade policies. The indicators for measuring the prices of materials and services declined in June, but are still close to the highest level since late 2022. Meanwhile, service providers' inventories increased in June, while indicators measuring inventory sentiment fell from their highest level since July last year. Although this indicates a decrease in the number of companies that think their inventory is too high, the index is still at its second highest level in almost a year.