Non-Manufacturing Sector Reports Continued Growth at Slower Rate

Tempe, AZ, August 3, 2016—The Non-Manufacturing Index registered 55.5% in July, 1 percentage point lower than the June reading of 56.5%, according to the latest Non-Manufacturing ISM Report On Business. This represents continued growth in the non-manufacturing sector at a slower rate.

The Non-Manufacturing Business Activity Index decreased to 59.3%, 0.2 percentage point lower than the June reading of 59.5%, reflecting growth for the 84th consecutive month, at a slightly slower rate in July.

The New Orders Index registered 60.3%, 0.4 percentage point higher than the reading of 59.9% in June.

The Employment Index decreased 1.3 percentage points in July to 51.4% from the June reading of 52.7%.

The Prices Index decreased 3.6 percentage points from the June reading of 55.5% to 51.9%, indicating prices increased in July for the fourth consecutive month.

According to the NMI, 15 non-manufacturing industries reported growth in July. The majority of the respondents’ comments reflect stability and continued growth for their respective companies and a positive outlook on the economy.

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

The three industries reporting contraction in July are Other Services; Agriculture, Forestry, Fishing & Hunting; and Mining.