Service Sector Index Fell in July but Remained Positive
Tempe, AZ, August 3, 2018- The Non-Manufacturing Index (NMI) registered 55.7%, which is 3.4 percentage points lower than the June reading of 59.1%. This represents continued growth in the non-manufacturing sector at a slower rate, according to the latest Non-Manufacturing ISM Report On Business.
There was a notable decrease in the Business Activity Index, which fell to 56.5%, 7.4 percentage points lower than the June reading of 63.9%. The July figure still reflects growth for the 108th consecutive month, at a slower rate. The New Orders Index registered 57%, 6.2 percentage points lower than the reading of 63.2% in June. The Employment Index increased 2.5 percentage points in July to 56.1% from the June reading of 53.6%. The Prices Index increased by 2.7 percentage points from the June reading of 60.7% to 63.4%, indicating that prices increased in July for the 29th consecutive month.
According to the NMI, 16 non-manufacturing industries reported growth. There has been a ‘cooling off’ in growth for the non-manufacturing sector. Tariffs and deliveries are an ongoing concern. The majority of respondents remain positive about business conditions and the economy.”
The 16 non-manufacturing industries reporting growth in July-listed in order-are mining; public administration; agriculture, forestry, fishing & hunting; accommodation & food services; other services; construction; real estate, rental & leasing; transportation & warehousing; finance & insurance; retail trade; wholesale trade; arts, entertainment & recreation; information; utilities; health care & social assistance; and management of companies & support services. The two industries reporting a decrease are educational services; and professional, scientific & technical services.