ISM: Services Sector, Manufacturing Expand in August
The Institute for Supply Management said its Non-Manufacturing Index (NMI) registered 58.6% in August, 2.6 percentage points higher than the 56% registered in July. This indicates continued growth at a faster rate in the non-manufacturing sector. This month’s NMI is the highest reading for the index since its inception in January 2008.
A reading above 50% indicates the non-manufacturing sector economy is generally expanding; below 50% indicates the non-manufacturing sector is generally contracting.
The 16 non-manufacturing industries reporting growth in August — listed in order — are: Educational Services; Management of Companies & Support Services; Information; Accommodation & Food Services; Public Administration; Construction; Finance & Insurance; Professional, Scientific & Technical Services; Retail Trade; Utilities; Transportation & Warehousing; Real Estate, Rental & Leasing; Agriculture, Forestry, Fishing & Hunting; Other Services; Wholesale Trade; and Health Care & Social Assistance. The two industries reporting contraction in August are: Mining; and Arts, Entertainment & Recreation.
The ISM also said that economic activity in the manufacturing sector expanded in August for the third consecutive month, and the overall economy grew for the 51st consecutive month.
The Purchasing Managers Index (PMI) registered 55.7%, an increase of 0.3 percentage point from July’s reading of 55.4%. August’s PMI reading, the highest of the year, indicates expansion in the manufacturing sector for the third consecutive month.
Of the 18 manufacturing industries, 15 are reporting growth in August in the following order: Textile Mills; Wood Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Computer & Electronic Products; Printing & Related Support Activities; Furniture & Related Products; Primary Metals; Fabricated Metal Products; Transportation Equipment; Machinery; Chemical Products; and Paper Products. The only industry reporting contraction in August is Miscellaneous Manufacturing.
To read the full ISM Non-Manufacturing report click here.
To read the full ISM Manufacturing report click here.