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.
"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."
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