ISM: Non-Manufacturing Sector Grew at a Slower Rate in July

The ISM Non-Manufacturing Index registered 55.7 points in July, 3.4 percentage points below June’s figure. This was the 102nd consecutive month of expansion as a reading above 50 indicates growth. Sixteen non-manufacturing industries reported growth, while two reported a decrease. The majority of respondents remain positive about business conditions and the economy, but tariffs and deliveries are an ongoing concern.

Growth in the Business Activity Index decreased 7.4 points to 56.5, the 108th consecutive month of growth. Twelve industries reported increased business activity, and three reported decreased activity.

Non-manufacturing employment grew for the 53rd consecutive month. The index increased 2.5 points to 56.1. Twelve industries reported increased employment, while four reported decreased employment.

The New Orders Index decreased 6.2 points to 57.0. Twelve industries reported increased business activity, while two reported decreased activity.

Supplier deliveries slowed for the 31st consecutive month, as the index registered 53.0 points (readings above 50 for this index indicate slower deliveries). Ten industries reported slower deliveries, while three industries reported faster deliveries.

Read the ISM release.

About Jack McCabe

Jack McCabe is a research associate in the Economic Policy and Research group at the ABA.
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