(PHOTO: REUTERS)
The Institute for Supply Management said it’s Non-Manufacturing Report on Business (ROB) index showed services sector growth cooled in August. The ISM said its services index fell to 59 last month from 60.3 in July, which was its highest since August 2005. Analysts were looking for a reading of 58.1 in August, according to a Reuters survey. A reading above 50 indicates expansion in the sector.
“This represents continued growth in the non-manufacturing sector at a slower rate,” said Anthony Nieves, chair of the Institute for Supply Management. “The Non-Manufacturing Business Activity Index decreased to 63.9 percent, which is 1 percentage point lower than the July reading of 64.9 percent, reflecting growth for the 73rd consecutive month at a slower rate.”
The ISM’s index of business activity fell to 63.9 last month from July’s reading of 64.9, while economists were looking for a reading of 61. The new orders index fell to 63.4 from 63.8, while the employment index dropped to 56 from 59.6. The index on prices slipped to 50.8 from 53.7.
The 15 non-manufacturing industries reporting growth in August — listed in order — are: Transportation & Warehousing; Real Estate, Rental & Leasing; Construction; Accommodation & Food Services; Retail Trade; Finance & Insurance; Public Administration; Health Care & Social Assistance; Educational Services; Utilities; Management of Companies & Support Services; Wholesale Trade; Arts, Entertainment & Recreation; Professional, Scientific & Technical Services; and Information. The only industry reporting contraction in August is Mining.
| ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS* AUGUST 2015 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| Index | Series Index Aug |
Series Index Jul |
Percent Point Change |
Direction | Rate of Change |
Trend** (Months) |
Series Index Aug |
Series Index Jul |
Percent Point Change |
| NMI®/PMI® | 59.0 | 60.3 | -1.3 | Growing | Slower | 67 | 51.1 | 52.7 | -1.6 |
| Business Activity/Production | 63.9 | 64.9 | -1.0 | Growing | Slower | 73 | 53.6 | 56.0 | -2.4 |
| New Orders | 63.4 | 63.8 | -0.4 | Growing | Slower | 73 | 51.7 | 56.5 | -4.8 |
| Employment | 56.0 | 59.6 | -3.6 | Growing | Slower | 18 | 51.2 | 52.7 | -1.5 |
| Supplier Deliveries | 52.5 | 53.0 | -0.5 | Slowing | Slower | 3 | 50.7 | 48.9 | +1.8 |
| Inventories | 54.5 | 57.0 | -2.5 | Growing | Slower | 5 | 48.5 | 49.5 | -1.0 |
| Prices | 50.8 | 53.7 | -2.9 | Increasing | Slower | 6 | 39.0 | 44.0 | -5.0 |
| Backlog of Orders | 56.5 | 54.0 | +2.5 | Growing | Faster | 3 | 46.5 | 42.5 | +4.0 |
| New Export Orders | 52.0 | 56.5 | -4.5 | Growing | Slower | 4 | 46.5 | 48.0 | -1.5 |
| Imports | 51.5 | 50.5 | +1.0 | Growing | Faster | 2 | 51.5 | 52.0 | -0.5 |
| Inventory Sentiment | 69.0 | 63.5 | +5.5 | Too High | Faster | 219 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 53.0 | 44.0 | +9.0 |
| Overall Economy | Growing | Slower | 73 | ||||||
| Non-Manufacturing Sector | Growing | Slower | 67 | ||||||
* Non-Manufacturing ISM® Report On Business® data is seasonally adjusted for Business Activity, New Orders, Prices and Employment Indexes. Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries.
** Number of months moving in current direction.
