Non-Manufacturing ISM Index Grows Slowly in June

The Non-Manufacturing ISM Report on Business Index was 56 in June, 0.3 points higher than in May. (Index readings above 50 indicate expansion.) This was the 65th consecutive month of growth. Fifteen industries reported growth in June, while three – mining, other services and construction – contracted.

The Business Activity Index registered 61.5, 2 points higher than May’s reading. Respondents cited increased customer traffic due to lower fuel prices as one reason for increased activity.

The Employment Index was 52.7, 2.6 points lower than May’s reading. Despite the slower pace, June marked the 16th consecutive month of growth in the non-manufacturing sector. Survey respondents noted that they have had “normal attrition,” and that those positions are “mostly being backfilled (albeit slowly).”

The New Orders Index was 58.3, 0.4 points higher than in May, and the 71st consecutive month of growth. Some respondents reported that the increase in orders was due to “business expansion” and “acquiring orders in several sections of the business not previously received.” Only two of the fifteen industries surveyed – mining and educational services – reported contraction of new orders in June.

The Supplier Deliveries Index declined 1.5 points to 51.5. Six industries reported slower deliveries, while five reported faster deliveries.