The Non-Manufacturing ISM Report on Business Index was 55.7 in May, 2.1 percentage points lower than the previous month. Index readings above 50 indicate expansion in the non-manufacturing economy. May was the 64th consecutive month of economic growth. Fifteen industries reported growth in May. The only industry reporting contraction is Mining.
The Business Activity Index was 59.5, 2.1 percentage points slower than the previous month, but still continuing the growth trend for the 70th consecutive month. Respondents attributed the growth to “business expansion and seasonal increases” and “spring season peak activity of consumer good flowing to major retailers.”
The Employment Index was 55.3, 1.4 percentage points slower than the previous month. Survey respondents cite “additional demand for services necessitated increased staffing counts” and “staffing for new client” as employment drivers in May. The only two industries reporting a reduction in employment are Mining and Educational Services.
The New Orders Index was 57.9, 1.3 percentage points slower than April, but still continuing the growth trend for the 70th consecutive month. Respondents reported the continued growth was driven by “more demand and requests for services” and “seeing new business development and new service requirements with new customers planning new and higher levels of market demands.”
The Supplier Deliveries Index declined 3.5 percentage points to 50. Seven industries reported slower deliveries and 8 reported faster deliveries.