The Institute for Supply Management (ISM) Non-Manufacturing Index came in at 56.4, beating the forecast as a sign the U.S. service sector remains solid. According to the NMI, 16 non-manufacturing industries reported growth, while only Wholesale Trade reported a decrease.
For August, forecasts for the NMI ranged from a low of 52.5 to a high of 54.5. The consensus was 54.0.
“The non-manufacturing sector’s rate of growth rebounded after two consecutive months of cooling off,” Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee. “The respondents remain concerned about tariffs and geopolitical uncertainty; however, they are mostly positive about business conditions.”
The Non-Manufacturing Business Activity Index rose to 61.5%, up 8.4% from 53.1% in July and reflecting growth for the 121st consecutive month. The New Orders Index came in at 60.3%, up 6.2% from the 54.1% reading in July.
The Employment Index fell moderately by 3.1% in August to 53.1% from 56.2% in July. The Prices Index rose 1.7% from the reading of 56.5% in July to 58.2%, indicating prices increased in August for the 27th consecutive month.