Non-Manufacturing Index Recorded Continued Growth in June

Tempe, Arizona, July 6, 2016—The Non-Manufacturing Index (NMI) registered 56.5% in June, 3.6 percentage points higher than the May reading of 52.9%, according to the Institute for Supply Management. This represents continued growth in the non-manufacturing sector at a faster rate.

The Non-Manufacturing Business Activity Index increased to 59.5%, 4.4 percentage points higher than the May reading of 55.1%, reflecting growth for the 83rd consecutive month, at a faster rate in June.

The New Orders Index registered 59.9%, 5.7 percentage points higher than the reading of 54.2% in May.

The Employment Index grew 3 percentage points in June after one month of contraction to 52.7% from the May reading of 49.7%.

The Prices Index decreased 0.1 percentage point from the May reading of 55.6% to 55.5%, indicating prices increased in June for the third consecutive month.

According to the NMI, 15 non-manufacturing industries reported growth in June. Respondents’ comments are mostly positive about business conditions and the economy. Overall, the report reflects a strong rebound from the 'cooling-off' of the previous month for the non-manufacturing sector.

The 15 non-manufacturing industries reporting growth in June—listed in order—are Mining; Arts, Entertainment & Recreation; Management of Companies & Support Services; Retail Trade; Health Care & Social Assistance; Utilities; Real Estate, Rental & Leasing; Accommodation & Food Services; Transportation & Warehousing; Wholesale Trade; Information; Public Administration; Agriculture, Forestry, Fishing & Hunting; Construction; and Finance & Insurance.

The three industries reporting contraction in June are Educational Services; Professional, Scientific & Technical Services; and Other Services.