The Non-Manufacturing ISM Report on Business Index fell to 59.0 in August, down 1.3 points from July’s record high reading of 60.3, but still positive, as readings above 50 indicate growth in the sector. Fifteen non-manufacturing industries reported growth in August, while one – the mining industry – reported contraction.
The Business Activity Index registered 63.9, down 1 point from July’s reading. Respondents noted that new acquisitions and continued market growth were strengthening business activity.
Non-manufacturing employment continued to grow according to the index, registering a reading of 56.0 points. Although August’s reading was 3.6 points lower than July’s, a reading of 56.0 is still indicates significant growth. Twelve industries reported growth in employment, while three industries – Mining; Arts Entertainment & Recreation; and Professional, Scientific & Technical Services – reported contraction.
The New Orders index fell 0.4 points on the month to 63.4, but still grew overall for the 73rd consecutive month. Respondents indicated that new customers and network upgrades were contributing to growth in orders. Growth in new orders was reported by 13 industries, including Construction; Transportation and Warehousing; and Finance & Insurance.
Supplier deliveries slowed as the index fell 0.5 points to 52.5 points. Readings above 50 indicate slower deliveries. Ten industries, including Real Estate and Educational Services, reported slower deliveries in August, while three – Mining; Finance & Insurance; and Transportation and Warehousing, reported faster deliveries.
Read the ISM report.
