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Thursday, August 6, 2020
HomeNewsEconomyISM Non-Manufacturing Index (NMI) Roars to 57.1 in June, Service Sector Rebounds Strongly

ISM Non-Manufacturing Index (NMI) Roars to 57.1 in June, Service Sector Rebounds Strongly

United States Postal Service (USPS) workers don face masks and gloves behind plexiglass at the USPS location on N. Main in Gainesville, Fla., during the coronavirus (COVID-19) pandemic. (Photo: People's Pundit Daily/PPD)

NMI Posts the Largest Single Month Gain in Survey History

United States Postal Service (USPS) workers don face masks and gloves behind plexiglass at the USPS location on N. Main in Gainesville, Fla., during the coronavirus (COVID-19) pandemic. (Photo: People's Pundit Daily/PPD)
United States Postal Service (USPS) workers don face masks and gloves behind plexiglass at the USPS location on N. Main in Gainesville, Fla., during the coronavirus (COVID-19) pandemic. (Photo: People’s Pundit Daily/PPD)

Tempe, Arizona (PPD) — The Institute for Supply Management (ISM) Non-Manufacturing Index (NMI) rose to 57.1% in June, far stronger than economists expected. The reading indicates U.S. service sector activity returned to growth after two months of contraction.

Forecasts ranged from a low of 46.0 to a high of 52.7. The consensus forecast was 50.1. This is the largest single-month percentage-point gain since the NMI debut in 1997. 

Last week, the Institute for Supply Management (ISM) Manufacturing Index (PMI) also came in stronger than expected at 52.6% in June, up from 43.1% in May. This reading further indicated the overall economy in expansion for the second straight month after one month of contraction that ended 131 consecutive months of growth.

Non-ManufacturingManufacturing
IndexSeries Index JunSeries Index MayPercent Point ChangeDirectionRate of ChangeTrend** (Months)Series Index JunSeries Index MayPercent Point Change
NMI®/ PMI®57.145.4+11.7GrowingFrom Contracting152.643.1+9.5
Business Activity/ Production66.041.0+25.0GrowingFrom Contracting157.333.2+24.1
New Orders61.641.9+19.7GrowingFrom Contracting156.431.8+24.6
Employment43.131.8+11.3ContractingSlower442.132.1+10.0
Supplier Deliveries57.567.0-9.5SlowingSlower1356.968.0-11.1
Inventories60.748.0+12.7GrowingFrom Contracting150.550.4+0.1
Prices62.455.6+6.8IncreasingFaster351.340.8+10.5
Backlog of Orders51.946.4+5.5GrowingFrom Contracting145.338.2+7.1
New Export Orders58.941.5+17.4GrowingFrom Contracting147.639.5+8.1
Imports52.943.7+9.2GrowingFrom Contracting148.841.3+7.5
Inventory Sentiment55.955.1+0.8Too HighFaster3N/AN/AN/A
Customers’ InventoriesN/AN/AN/AN/AN/AN/A44.646.2-1.6
Overall EconomyGrowingFrom Contracting1
Non-Manufacturing SectorGrowingFrom Contracting1
Non-Manufacturing ISM Report On Business data is seasonally adjusted for the Business Activity, New Orders, Prices and Employment indexes. Manufacturing ISM Report On Business data is seasonally adjusted for New Orders, Production, Employment and Inventories indexes.
**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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