The U.S. services sector expanded in June at a faster rate, according to the Institute for Supply Management's Non-Manufacturing Business Activity Index, which reached 59.5%, up 4.4% from May. The June reading is the highest since November and is also higher than economists had expected.
Markit’s U.S. Services Business Activity Index showed a more subdued level of growth for the services sector, however. The index hit 51.4 in June, up only slightly from 51.3 in May.
The U.S. trade deficit grew in May by $3.8 billion to reach $41.4 billion, according to data from the Department of Commerce. Exports fell in May by $0.3 billion, contributing to the deficit.
The “super typhoon” Nepartak headed for Taiwan this week is expected to cause massive flooding, possible landslides and could disrupt global supply chains. Nepartak could also be more problematic than Typhoon Soudelor, which hit Taiwan last August and was the biggest disruptive supply chain event of 2015 in terms of revenue, according to Resilinc’s EventWatch report.