Service Sector Expanded in August

Tempe, AZ, September 6, 2017-The Non-Manufacturing Index for August registered 55.3%, which is 1.4 percentage points higher than the July reading of 53.9%, says the latest Non-Manufacturing ISM Report On Business. This represents continued growth in the non-manufacturing sector at a faster rate.

The Non-Manufacturing Business Activity Index increased to 57.5%, 1.6 percentage points higher than the July reading of 55.9%, reflecting growth for the 97th consecutive month, at a faster rate in August.

The New Orders Index registered 57.1%, 2 percentage points higher than the reading of 55.1% in July.

The Employment Index increased 2.6 percentage points in August to 56.2% from the July reading of 53.6%.

The Prices Index increased 2.2 percentage points from the July reading of 55.7% to 57.9%, indicating prices increased in August for the third consecutive month.

According to the NMI, 15 non-manufacturing industries reported growth.

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

The two industries reporting contraction in August are Agriculture, Forestry, Fishing & Hunting; and Transportation & Warehousing.