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Saturday, November 27, 2021
HomeNewsEconomyISM: Service Sector Growth Picked Up in June

ISM: Service Sector Growth Picked Up in June

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Service sector employee, nurse at a hospital. (Photo: REUTERS)

U.S. service-sector activity increased more than expected in June. The Institute for Supply Management (ISM) Non-Manufacturing Report on Business purchasing managers index rose to 56.5 in June from 52.9 in May, the highest reading since November.

The median economic forecast called for the index to increase to 53.6. Key components of the index also gained ground. New orders registered at 59.9, up from 54.2 in May. Employment grew to 52.7 from May’s 49.7. The ISM doesn’t disclose the date its survey closes, so it isn’t clear if the latest report fully captures uncertainty in global markets generated by the United Kingdom’s vote to leave the European Union.

A separate ISM survey released Friday showed that almost one-third of service-industry businesses thought their firm would be negatively or slightly negatively affected by the Brexit.

SERVICE SECTOR INDUSTRY PERFORMANCE

The 15 non-manufacturing industries reporting growth in June — listed in order — are: Mining; Arts, Entertainment & Recreation; Management of Companies & Support Services; Retail Trade; Health Care & Social Assistance; Utilities; Real Estate, Rental & Leasing; Accommodation & Food Services; Transportation & Warehousing; Wholesale Trade; Information; Public Administration; Agriculture, Forestry, Fishing & Hunting; Construction; and Finance & Insurance. The three industries reporting contraction in June are: Educational Services; Professional, Scientific & Technical Services; and Other Services.

ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE
COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS*
JUNE 2016
Non-Manufacturing Manufacturing
Index Series
Index
Jun
Series
Index
May
Percent
Point
Change
Direction Rate
of
Change
Trend**
(Months)
Series
Index
Jun
Series
Index
May
Percent
Point
Change
NMI®/PMI® 56.5 52.9 +3.6 Growing Faster 77 53.2 51.3 +1.9
Business Activity/Production 59.5 55.1 +4.4 Growing Faster 83 54.7 52.6 +2.1
New Orders 59.9 54.2 +5.7 Growing Faster 83 57.0 55.7 +1.3
Employment 52.7 49.7 +3.0 Growing From Contracting 1 50.4 49.2 +1.2
Supplier Deliveries 54.0 52.5 +1.5 Slowing Faster 6 55.4 54.1 +1.3
Inventories 55.5 54.0 +1.5 Growing Faster 15 48.5 45.0 +3.5
Prices 55.5 55.6 -0.1 Increasing Slower 3 60.5 63.5 -3.0
Backlog of Orders 47.5 50.0 -2.5 Contracting From Growing 1 52.5 47.0 +5.5
New Export Orders 53.0 49.0 +4.0 Growing From Contracting 1 53.5 52.5 +1.0
Imports 54.0 53.5 +0.5 Growing Faster 5 52.0 50.0 +2.0
Inventory Sentiment 62.5 60.0 +2.5 Too High Faster 229 N/A N/A N/A
Customers’ Inventories N/A N/A N/A N/A N/A N/A 51.0 50.0 +1.0
Overall Economy Growing Faster 83
Non-Manufacturing Sector Growing Faster 77

* 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
Staff Writing Group

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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