The ISM Non-Manufacturing Index registered 53.7 points in July, 1.4 percentage points lower than June’s figure. This was the 114th consecutive month of expansion as a reading above 50 indicates growth. However, this was the lowest reading in three years. Thirteen of the eighteen non-manufacturing industries reported growth. Respondents are concerned about the uncertainty of tariffs, capacity constraints and employment resources; however, comments were mixed about overall business conditions and the economy.
Growth in the Business Activity Index decreased 5.1 percentage points to 53.1, the 120th consecutive month of growth. Nine industries reported increased business activity, while six reported decreased activity. Comments from respondents include: “Summer tends to be a slower time of year” and “Slowdown due to [economic and trade] uncertainty.”
Non-manufacturing employment grew for the 65th consecutive month. The index increased 1.2 points to 56.2. Eleven industries reported increased employment, while four reported decreased employment.
The New Orders Index decreased 1.7 points to 54.1. Eleven industries reported increased business activity, while five reported decreased activity.
Supplier deliveries slowed yet again, as the index registered 51.5 points (readings above 50 for this index indicate slower deliveries). Nine industries reported slower deliveries, while five industries reported faster deliveries. Comments from respondents include: “Shortage of warehouse personnel delays scheduled deliveries to the point where it impacts operations.”
Read the ISM release.
