The ISM Services index for June was released earlier today, and like its manufacturing peer, the report was stronger than expected.  While economists were expecting a headline reading of 56.5, the actual reading came in at 57.4 and just 0.2 points shy of the post-election high of 57.6.  On a combined basis and accounting for each sector’s share of the overall economy, the ISM for June also came in at 57.4 up from 56.7 in May.

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Looking at the internals of the report, most of the sub-indices in this month’s report also showed m/m increases.  The only decliners on the month were Backlog Orders, Inventory Sentiment, and Employment.  On the upside, the largest increases were in Inventories and Prices.

One of the most interesting aspects of this month’s report was the commentary.  As shown below, despite some recent softness in economic data, there seems to be little in the way of concern on the part of respondents in the services sector.  Besides uncertainty surrounding ObamaCare, activity appears to be strong and improving.

Finally, with regards to the commodities that were reported as being in short supply this month, can you see the trend?

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