The ISM Services Index (formerly non-manufacturing sector) grew in July for the second consecutive month. The index registered 58.1% in July, 1.0 percentage points higher than the June reading.
Fifteen of the eighteen non-manufacturing industries reported growth. Many respondents “remain concerned about the pandemic; however, they are mostly optimistic about business conditions and the economy as businesses continue to reopen. Sentiment varies across industries, as they are impacted differently.”
The Business Activity Index registered 67.2% in July, a 1.2 percentage point increase from the June reading of 66.0%. This represents growth for the second consecutive month.
Service sector employment contracted for the fifth month in a row and registered 42.1%, a decrease of 1.0 percentage points from the June reading of 43.1%. Five industries reported increased employment.
The New Orders Index registered 67.7%, an increase of 6.1 percentage points from the June reading of 61.6%. This is the second consecutive month of growth in New Orders after two months of contraction. Comments from respondents include: “Resumption of elective surgery activity” and “A surge in new orders due to openings of businesses.”
Supplier deliveries remained slow, as the index registered 55.2%, which is 2.3 percentage points above the 57.7% reported in June. A reading above 50% indicates slower deliveries.
Read the ISM release.
