In June 2024, the nation's purchasing and supply executives reported a contraction in economic activity in the services sector, with the Services PMI® registering at 48.8 percent. This marks the third contraction in 49 months. The Business Activity Index stood at 49.6 percent, the New Orders Index at 47.3 percent, the Employment Index at 46.1 percent, and the Supplier Deliveries Index at 52.2 percent. Despite the contraction, eight industries reported growth during the month. Factors contributing to the slowdown include flat or declining business activity, higher costs of commodities, transportation challenges affecting supplier deliveries, and continued employment contraction. The Prices Index registered at 56.3 percent, indicating an increase in prices paid for materials and services for the 85th consecutive month. Overall, the Services PMI® suggests the U.S. economy is contracting for the first time in 17 months, pointing to a period of economic slowdown in various service sectors.