U.S. services sector rebounds after two-month contraction as economy reopens

A notice requiring to wear face masks is seen outside a candy store near the Times Square in New York, the United States, July 4, 2020. (Xinhua/Wang Ying)

The non-manufacturing index (NMI), which gauges the performance of the services sector, registered 57.1 percent in June, 11.7 percentage points higher than the May reading.

WASHINGTON, July 6 (Xinhua) -- The U.S. services sector rebounded in June after two straight months of contraction as businesses gradually reopen across the country, the Institute for Supply Management (ISM) reported Monday.

The non-manufacturing index (NMI), which gauges the performance of the services sector, registered 57.1 percent, 11.7 percentage points higher than the May reading, according to the latest Non-Manufacturing ISM Report on Business.

"Respondents remain concerned about the coronavirus and the more recent civil unrest; however, they are cautiously optimistic about business conditions and the economy as businesses are beginning to reopen," said Anthony Nieves, chair of the ISM's non-manufacturing business survey committee.

A business executive from the accommodation & food services industry said businesses are starting to reopen and the economy seems to be on the road to recovery, "but let's not get too complacent," as COVID-19 is still a pandemic, and a vaccine has not been developed.

A woman walks a dog on the street in Burlingame, California, the United States, July 4, 2020. (Photo by Li Jianguo/Xinhua)

"Economics is the reason for the push for businesses to reopen. Utmost care and awareness still needs to be cautiously and religiously followed," the executive said.

A respondent from a public higher-education institution, meanwhile, said they are expecting budget cuts for fiscal year 2021, noting that the "biggest concern" is COVID-19.

"The plan for a vast majority of higher education institutions is to have students on campus and blend of face-to-face and online classes. However, if students do not effectively social distance, then we could see a dramatic increase in COVID-19 and campuses forced to move to online classes," the respondent said, adding that this will be "a major financial blow" to revenue for all universities.

"COVID-19 and the riots have disrupted the normal flow of business," a business executive from real estate, rental & leasing said. "There is no new normal yet."