ISM: U.S. Services Sector Growth Slows in June
The Institute for Supply Management said its Non-Manufacturing Index registered 52.1% in June, 1.6 percentage points lower than the 53.7% registered in May, indicating continued growth at a slower rate.
Economic activity in the non-manufacturing sector grew in June for the 30th 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 51.7%, which is 3.9 percentage points lower than the 55.6% reported in May, reflecting growth for the 35th consecutive month. The New Orders Index decreased by 2.2 percentage points to 53.3% and the Employment Index increased by 1.5 percentage points to 52.3%, indicating continued growth in employment at a faster rate. The Prices Index decreased 0.9 percentage point to 48.9%, indicating lower month-over-month prices for the second consecutive month.
According to the NMI, 12 non-manufacturing industries reported growth in June. Respondents’ comments are mixed and vary by industry and company.
The 12 non-manufacturing industries reporting growth in June – listed in order – are: Educational Services; Arts, Entertainment & Recreation; Management of Companies & Support Services; Retail Trade; Utilities; Transportation & Warehousing; Accommodation & Food Services; Public Administration; Construction; Information; Finance & Insurance; and Wholesale Trade.
The five industries reporting contraction in June are: Mining; Agriculture, Forestry, Fishing & Hunting; Health Care & Social Assistance; Real Estate, Rental & Leasing; and Professional, Scientific & Technical Services.
To read the full ISM report, click here.