The ISM Non-Manufacturing Index registered 55.5 points in July, down 1 point from the previous month. Despite the decline in the index, July marked the 78th consecutive month of growth as indicated by readings over 50. Fifteen non-manufacturing industries reported growth in July, while three reported contraction.
Growth in the Business Activity Index slipped to 59.3 points, down 0.2 points from June’s reading. Respondents reported increased business enterprise sales and business expansion. Fifteen of the eighteen industries reported growth, while two industries, Other Services, and Agriculture, Forestry, Fishing & Hunting, reported contraction.
Non-manufacturing employment grew in July for the second consecutive month, albeit at a slower pace. The index slipped 1.3 points to 51.4. Some respondents reported adding new sales and administrative staff, while others reported downsizing to maintain profit margins. Twelve industries reported increasing employment during the month, while five industries including Information, Agriculture, and Utilities reported contraction.
The New Orders Index registered 60.3 points, up 0.4 from June. Respondents attributed growth to new fiscal year spending and increased marketing and development opportunities. Thirteen industries reported growth in new orders, while four reported contraction.
Supplier deliveries slowed for the seventh consecutive month, as the index registered 51.0 points (readings above 50 for this index indicate slowed deliveries). Seven industries reported slower deliveries, while six reported faster deliveries.
Read the ISM release.