ISM: Services Sector Grows in July
The Institute for Supply Management said its Non-Manufacturing Index (NMI) registered 56% in July, up 3.8 percentage points from the 52.2% registered in June, indicating continued growth at a faster rate in the non-manufacturing sector. Economic activity in the non-manufacturing sector grew in July for the 43rd consecutive month
A reading above 50% indicates the non-manufacturing sector economy is generally expanding; below 50% indicates the non-manufacturing sector is generally contracting.
The Non-Manufacturing Business Activity Index increased substantially to 60.4%, which is 8.7 percentage points higher than the 51.7% reported in June, reflecting growth for the 48th consecutive month. The New Orders Index increased significantly by 6.9 percentage points to 57.7%, and the Employment Index decreased 1.5 percentage points to 53.2%, indicating growth in employment for the 12th consecutive month. The Prices Index increased 7.6 percentage points to 60.1%, indicating prices increased at a significantly faster rate in July when compared to June.
The 16 non-manufacturing industries reporting growth in July — listed in order — are: Arts, Entertainment & Recreation; Construction; Information; Wholesale Trade; Retail Trade; Finance & Insurance; Real Estate, Rental & Leasing; Agriculture, Forestry, Fishing & Hunting; Utilities; Educational Services; Other Services; Management of Companies & Support Services; Professional, Scientific & Technical Services; Accommodation & Food Services; Public Administration; and Transportation & Warehousing.
The two industries reporting contraction in July are: Mining; and Health Care & Social Assistance.
To read the full report click here.