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Thursday, April 25, 2024
HomeNewsEconomyISM ROB: Service Sector Growth Slows in August (Chart)

ISM ROB: Service Sector Growth Slows in August (Chart)

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(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.

Written by

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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