U.S. services sector holds up in June

Driving the news: S&P Global's services activity index rose 0.5 point, to 51.2, as new orders posted their strongest gain since February, though employment declined.

• ISM's services Purchasing Managers' Index fell by a similar amount, to 54, with hiring returning to expansion and its prices gauge falling to a four-month low as price pressures stemming from the Iran war eased.

What they're saying: "Customer pushback against these high prices was again widely reported, most notably in consumer-facing businesses," S&P Global chief business economist Chris Williamson wrote in a release.

• "Consumer-facing companies are nevertheless reporting that further price falls should help stimulate sales in the months ahead, providing a ray of hope for both the growth and inflation outlooks," Williamson added.

What to watch: ISM said every commodity reported in short supply in June was needed for data-center construction.

• Steve Miller, chair of the ISM survey, told reporters that memory components have shifted from simply getting more expensive to becoming "now in short supply," creating "a little bit of risk out there on the horizon" that companies won't be able to get what they need.
• One utility respondent described suppliers limiting price quotes to as little as 24 hours because of long lead times, material shortages and volatile pricing, while another said lead times for data-center components are stretching as demand outpaces supply.