Non-Manufacturing Index Ticked Down in April

Tempe, AZ, June 5, 2017-The Non-Manufacturing Index registered 56.9%, which is 0.6 percentage point lower than the April reading of 57.5%, according to the Non-Manufacturing ISM Report On Business.

This represents continued growth in the non-manufacturing sector at a slightly slower rate.

The Non-Manufacturing Business Activity Index decreased to 60.7%, 1.7 percentage points lower than the April reading of 62.4%, reflecting growth for the 94th consecutive month, at a slower rate in May.

The New Orders Index registered 57.7%, 5.5 percentage points lower than the reading of 63.2% in April.

The Employment Index increased 6.4 percentage points in May to 57.8% from the April reading of 51.4%.

The Prices Index decreased 8.4 percentage points from the April reading of 57.6% to 49.2%, indicating prices decreased in May for the first time after 13 consecutive months of increasing.

According to the NMI, 17 non-manufacturing industries reported growth. Although the non-manufacturing sector’s growth rate dipped in May, the sector continues to reflect strength, buoyed by the strong rate of growth in the Employment Index. The majority of respondents’ comments continue to indicate optimism about business conditions and the overall economy.

The 17 non-manufacturing industries reporting growth in May-listed in order-are Real Estate, Rental & Leasing; Construction; Accommodation & Food Services; Utilities; Arts, Entertainment & Recreation; Wholesale Trade; Mining; Health Care & Social Assistance; Management of Companies & Support Services; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Retail Trade; Finance & Insurance; Public Administration; Transportation & Warehousing; Information; and Other Services.

The only industry reporting contraction in May is Educational Services.