The Institute for Supply Management’s index
togble of non- manufacturing businesses, which covers about 90 percent of the economy, fell to 55 from 55.4 in May, according to the median forecast of 59 economists surveyed by Bloomberg News. Readings above 50 signal expansion.
Companies such as Bed Bath and Beyond Inc. may find it harder to boost sales without faster job growth as government stimulus wanes. Private hiring last month rose less than forecast and consumer confidence plunged, indicating the recovery from the worst recession since the 1930s remains vulnerable.
“Given the headwind from slower private payrolls, consumers are going to spend cautiously,” said Michael Gregory, a senior economist at BMO Capital Markets in Toronto. “We still have a recovery, but it’ll probably be a little more sluggish.”
The Tempe, Arizona-based ISM’s report is due at 10 a.m. in New York. Bloomberg survey estimates ranged from 52 to 56.6.
