Service Sector Expansion Slows in June, ISM Says
The Institute for Supply Management’s services index showed a lower rate of expansion in June, falling to 57.2 from 60.1 the previous month.
Factory inventories fell, according to the report, by 0.4% -- their 16th straight drop. As factories deplete their inventories and ramp up production to meet new orders, trucking is likely to see an uptick in demand for freight-hauling services.
The U.S. service economy, of which trucking is a part, is the largest segment of the total U.S. economy.
Also released Wednesday was a Commerce Department report on U.S. factory orders that showed May orders rose 0.7%, providing evidence that the manufacturing sector is becoming the strongest part of the U.S. economy.
The rise, which was also 0.7% excluding the more volatile transportation equipment orders, was larger than expected, Bloomberg reported. Analysts had been expecting a 0.5% rise in orders during the month.
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