Non-Manufacturing Index Down in July But Still Positive

Tempe, AZ, August 3, 2017-The Non-Manufacturing Index for July registered 53.9%, which is 3.5 percentage points lower than the June reading of 57.4%, 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 to 55.9%, 4.9 percentage points lower than the June reading of 60.8%, reflecting growth for the 96th consecutive month, at a slower rate in July.

The New Orders Index registered 55.1%, 5.4 percentage points lower than the reading of 60.5% in June.

The Employment Index decreased 2.2 percentage points in July to 53.6% from the June reading of 55.8%.

The Prices Index increased 3.6 percentage points from the June reading of 52.1% to 55.7%, indicating prices increased in July for the second consecutive month.

According to the NMI, 15 non-manufacturing industries reported growth. The non-manufacturing sector did not sustain the previous rate of growth and cooled-off in July. The majority of respondents’ comments were mostly positive about business conditions and the state of the economy.

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