(Photo: Reuters)
The ISM Report on Business, the Institute for Supply Management’s gauge of service-sector growth declined to 55.5 last month from 56.5 in June. The reading also fell short of the expectation for a reading of 56.
“According to the NMI, 15 non-manufacturing industries reported growth in July,” said Anthony Nieves, CPSM, C.P.M., CFPM, chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee. “The majority of the respondents’ comments reflect stability and continued growth for their respective companies and a positive outlook on the economy.”
SERVICE SECTOR NDUSTRY PERFORMANCE
The 15 non-manufacturing industries reporting growth in July — listed in order — are: Arts, Entertainment & Recreation; Educational Services; Accommodation & Food Services; Real Estate, Rental & Leasing; Retail Trade; Utilities; Health Care & Social Assistance; Public Administration; Finance & Insurance; Management of Companies & Support Services; Transportation & Warehousing; Wholesale Trade; Construction; Information; and Professional, Scientific & Technical Services. The three industries reporting contraction in July are: Other Services; Agriculture, Forestry, Fishing & Hunting; and Mining.
Readings above 50 indicate expansion, while those below point to contraction.
| ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS* JULY 2016 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| Index | Series Index Jul |
Series Index Jun |
Percent Point Change |
Direction | Rate of Change |
Trend** (Months) |
Series Index Jul |
Series Index Jun |
Percent Point Change |
| NMI®/PMI® | 55.5 | 56.5 | -1.0 | Growing | Slower | 78 | 52.6 | 53.2 | -0.6 |
| Business Activity/Production | 59.3 | 59.5 | -0.2 | Growing | Slower | 84 | 55.4 | 54.7 | +0.7 |
| New Orders | 60.3 | 59.9 | +0.4 | Growing | Faster | 84 | 56.9 | 57.0 | -0.1 |
| Employment | 51.4 | 52.7 | -1.3 | Growing | Slower | 2 | 49.4 | 50.4 | -1.0 |
| Supplier Deliveries | 51.0 | 54.0 | -3.0 | Slowing | Slower | 7 | 51.8 | 55.4 | -3.6 |
| Inventories | 54.0 | 55.5 | -1.5 | Growing | Slower | 16 | 49.5 | 48.5 | +1.0 |
| Prices | 51.9 | 55.5 | -3.6 | Increasing | Slower | 4 | 55.0 | 60.5 | -5.5 |
| Backlog of Orders | 51.0 | 47.5 | +3.5 | Growing | From Contracting | 1 | 48.0 | 52.5 | -4.5 |
| New Export Orders | 55.5 | 53.0 | +2.5 | Growing | Faster | 2 | 52.5 | 53.5 | -1.0 |
| Imports | 53.0 | 54.0 | -1.0 | Growing | Slower | 6 | 52.0 | 52.0 | 0.0 |
| Inventory Sentiment | 63.0 | 62.5 | +0.5 | Too High | Faster | 230 | N/A | N/A | N/A |
| Customers’ Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 51.0 | 51.0 | 0.0 |
| Overall Economy | Growing | Slower | 84 | ||||||
| Non-Manufacturing Sector | Growing | Slower | 78 | ||||||
* 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.
