US: ISM Non-Manufacturing signals economic activity strengthened broadly in June - Wells Fargo

According to analysts from Wells Fargo, the rise recorded in the ISM Non-Manufacturing index released today is consistent with a solid rebound during the second quarter. 

Key Quotes: 

“Activity outside the factory sector expanded at a solid clip in June, with the ISM non-manufacturing index rising to 59.1. The economy-weighted average of the two ISM surveys rose to 59.2. That supports our call that GDP growth roared back in Q2 after what was only a temporary slowdown in the first quarter.”

“Current business activity strengthened, while a pickup in new orders points to growth remaining solid over the near term.”

“The employment index edged down to 53.6, consistent with our call for payroll growth to have moderated in June. We anticipate a rise of 185,000 jobs in tomorrow’s employment report versus 223,000 jobs in May.”