The ISM Services Index registered 61.7% in August; 2.4 percentage points lower than the July reading of 64.1%. This reading represents the fifteenth straight month of growth for the services sector, which has expanded for all but two of the last 139 months.
Seventeen non-manufacturing industries reported growth. Survey respondents noted “Supply chain disruptions — including manufacturing-labor shortages, logistics delays and lack of material to make products — are significantly disrupting our business.”
The Business Activity Index registered 60.1% in August, a decrease of 6.9 percentage points from the July reading of 67.0%. This represents growth for the fifteenth consecutive month.
Service sector employment grew in August for the second month after the June decrease, and registered 53.7% in August, essentially unchanged from July. Nine industries reported growth in employment for the month.
The New Orders Index was 63.2%, a decrease of 0.5 percentage points from the July reading of 63.7%. Comments from respondents include: “Expansion into new markets has provided an uptick in business” and “Increased client demand for new and add-on projects.”
The supplier deliveries index registered 69.6% in August, which is 2.4 percentage points lower than the 72.0% reported in July. A reading above 50% indicates slower deliveries.
Read the ISM release.
