Weekly Talking Points for Financial Advisors (7/7/25)

Read the highlights of this week's commentary from Helios:

• The U.S. economy added 147,000 jobs in June, and the unemployment rate fell to 4.1% from 4.2% in May. Most of the job growth came from the government and healthcare sectors, while hiring in the private sector slowed. Labor force participation declined, and wage growth moderated. The job market is holding steady but cooling, lowering the odds of a near-term rate cut from the Fed.
• The ISM Manufacturing PMI rose slightly to 49.0 in June, the fourth straight month of contraction (a reading below 50 signals contraction). New orders declined further, production remained flat, and employment decreased. Input costs surged due to tariffs, and disrupted supply chains continue to weigh on demand, underscoring persistent weakness in the manufacturing sector.
• The ISM Services PMI rose to 50.8 in June, signaling modest expansion. Business activity and new orders improved, but employment continued to contract. Input prices remained elevated, and businesses stayed cautious amid ongoing tariff uncertainty and weak backlog growth. Some customers rushed orders to take advantage of delayed tariffs, temporarily boosting demand.

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