The Non-Manufacturing ISM Report on Business Index rose 4.3 points to 60.3 in July, the highest reading of the index since its inception in 2008 (index readings above 50 indicate expansion). Fifteen industries reported growth in July, while two – Professional, Scientific & Technical Services; and Mining – reported contraction.
The Business Activity Index registered 64.9, up 3.4 points from June’s reading. Respondents reported increases in advertising and that “pent up demand was starting to loosen.”
The Employment Index was 59.6 percent, up 6.9 percent from June. June marked the 17th consecutive month of employment growth in the non-manufacturing sector. Respondents reported the need for additional staff to meet service needs, and support organizational growth.
The New Orders Index rose 5.5 points to 63.8, the highest reading since 2005. Some respondents reported increased customer interest in new products, and more available work. Thirteen industries reported growth of new orders, while three – Other Services; Professional, Scientific & Technical Services; and Mining contracted.
The Supplier Deliveries slowed as the index rose 1.5 points to 53. Readings above 50 indicate slower deliveries. Seven industries reported slower deliveries, while eight reported no change.
Read the ISM release.