Markit's Services PMI soared to record highs in June at 61.0 (though notably dropped back from its 61.2 flash print which suggest slight softening in the latter half of the month) but oustanding business fell and once again margins are under pressure as prices charged dropped but prices paid rose. Perhaps most worrisome - business optimism tumbled. Then ISM Services hit and disappointed dropping from 56.3 to 56.0 and missing expectations by the most since January as business activity dropped to its lowest since March. Sentiment for inventory builds (the key for GDP) is at Dec 2013 lows. Under the surface, these reports suggest anything but the Q2 rebound so often crowed about.
US Services PMI - record highs...
[3]
Headlines are awesome but business is slowing and margin pressures continue...
[4]
Then ISM Services dropped and missed...
[5]
Full Breakdown- not a pretty picture
[6]
Sources: Bloomberg and ISM
