Non-Manufacturing Index Down but Still Positive in June
Tempe, AZ, August 5, 2019-The Non-Manufacturing Index registered 53.7%, which is 1.4 percentage points lower than the June reading of 55.1%, according to the latest Non-Manufacturing ISM Report on Business. This represents continued growth in the non-manufacturing sector, at a slower rate.
This is the index’s lowest reading since August 2016, when it registered 51.8%. The Non-Manufacturing Business Activity Index decreased to 53.1%, 5.1 percentage points lower than the June reading of 58.2%, reflecting growth for the 120th consecutive month.
The New Orders Index registered 54.1%; 1.7 percentage points lower than the reading of 55.8% in June.
The Employment Index increased 1.2 percentage points in July to 56.2% from the June reading of 55%.
The Prices Index decreased 2.4 percentage points from the June reading of 58.9% to 56.5%, indicating that prices increased in July for the 26th consecutive month.
According to the NMI, 13 non-manufacturing industries reported growth. The non-manufacturing sector’s rate of growth continued to cool off. Respondents indicated ongoing concerns related to tariffs and employment resources. Comments remained mixed about business conditions and the overall economy.
The 13 non-manufacturing industries reporting growth in July-listed in order-are accommodation & food services; utilities; professional, scientific & technical services; real estate, rental & leasing; transportation & warehousing; construction; information; other services; finance & insurance; public administration; management of companies & support services; mining; and health care & social assistance. The five industries reporting a decrease are arts, entertainment & recreation; agriculture, forestry, fishing & hunting; retail trade; wholesale trade; and educational services.