August Non-Manufacturing Index Falls Slightly, Remains Positive

Tempe, Arizona, September 6, 2016—The Non-Manufacturing Index registered 51.4% in August, 4.1 percentage points lower than the July reading of 55.5%, say the nation's purchasing and supply executives in 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 substantially to 51.8%, 7.5 percentage points lower than the July reading of 59.3%, reflecting growth for the 85th consecutive month, at a notably slower rate in August.

The New Orders Index registered 51.4%, 8.9 percentage points lower than the reading of 60.3% in July.

The Employment Index decreased 0.7 percentage point in August to 50.7% from the July reading of 51.4%.

The Prices Index decreased 0.1 percentage point from the July reading of 51.9% to 51.8%, indicating prices increased in August for the fifth consecutive month.

According to the NMI, 11 non-manufacturing industries reported growth in August. The majority of the respondents’ comments indicate that there has been a slowing in the level of business for their respective companies.

The 11 non-manufacturing industries reporting growth in August—listed in order—are Utilities; Real Estate, Rental & Leasing; Accommodation & Food Services; Finance & Insurance; Educational Services; Health Care & Social Assistance; Public Administration; Management of Companies & Support Services; Professional, Scientific & Technical Services; Information; and Construction.

The seven industries reporting contraction in August—listed in order—are Other Services; Mining; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; Wholesale Trade; Retail Trade; and Arts, Entertainment & Recreation.