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Saturday, September 14, 2019
HomeNewsEconomyISM Service Sector Index (NMI) Easily Beats Forecast for August

ISM Service Sector Index (NMI) Easily Beats Forecast for August

Pedestrians walk through the Canary Wharf financial district of London January 16, 2009. (Photo: Reuters)
Pedestrians walk through the Canary Wharf financial district of London January 16, 2009. (Photo: Reuters)
Pedestrians walk through the Canary Wharf financial district of London January 16, 2009. (Photo: Reuters)

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.

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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