NMI: Business Activity Rose to 61.2%, New Orders Gained to 58.6%, and Employment Increased to 58.1%
The Institute for Supply Management (ISM) Non-Manufacturing Index (NMI) for the U.S. service sector came in at 56.9 for May, beating the consensus forecast. That’s a gain of 1.4 percentage points from April, and indicates continued service sector growth at a slightly faster rate.
|Indicator||Prior||Consensus Forecast||Forecast Range||Actual|
|NMI Composite Index – Level||55.5||55.8||52.5 to 56.5||56.9|
The Non-Manufacturing Business Activity Index rose 1.7% to 61.2%, suggesting growth for the 118th consecutive month. The New Orders Index posted a slightly higher (0.5%) reading at 58.6%. The Employment Index rose 4.4% to 58.1% , while the Prices Index fell 0.3% from 55.7% to 55.4%, indicating that prices increased in May for the 24th consecutive month.
“According to the NMI, 16 non-manufacturing industries reported growth,” Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee. “The non-manufacturing sector continues to experience a slight uptick in business activity, but it is still leveling off overall.”
“Respondents are mostly optimistic about overall business conditions, but concerns remain about tariffs and employment resources.”