ISM: U.S. Services Sector Activity Grows in July
The Institute for Supply Management said its Non-Manufacturing Index registered 52.6% in July, 0.5 percentage point higher than the 52.1% registered in June, indicating continued growth this month at a slighter faster rate in the non-manufacturing sector. Economic activity in the sector grew in July for the 31st 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 registered 57.2%, which is 5.5 percentage points higher than the 51.7% reported in June, reflecting growth for the 36th consecutive month. The New Orders Index increased by 1 percentage point to 54.3%. The Employment Index decreased by 3 percentage points to 49.3%, indicating contraction in employment for the first time since December 2011. The Prices Index increased 6 percentage points to 54.9%, indicating higher month-over-month prices when compared to June. According to the NMI, 11 non-manufacturing industries reported growth in July. Respondents’ comments are mixed and vary by industry and company.”
The report was issued Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee.
The 11 non-manufacturing industries reporting growth in July – listed in order – are: Accommodation & Food Services; Retail Trade; Utilities; Other Services; Educational Services; Arts, Entertainment & Recreation; Information; Real Estate, Rental & Leasing; Finance & Insurance; Public Administration; and Management of Companies & Support Services. The seven industries reporting contraction in July – listed in order – are: Mining; Agriculture, Forestry, Fishing & Hunting; Construction; Health Care & Social Assistance; Transportation & Warehousing; Wholesale Trade; and Professional, Scientific & Technical Services.
To read the full report, click here.