ISM: The services sector progresses in August
The ISM services index recorded 56.9% in August; 0.2 percentage point higher than July’s reading of 56.7%. This reading represents the 27e consecutive month of growth for the service sector.
Fourteen service industries recorded growth in August. Mining; Real estate, rental and leasing; Utilities; Construction; Educational services; Information; Transportation and warehousing; Wholesale trade; health care and social assistance; Public administration; Finance & Insurance; Business Management & Support Services; Professional, scientific and technical services; and other services. The two industries reporting a decline in August are: agriculture, forestry, fishing and hunting; and Arts, Entertainment and Recreation.
The business activity index recorded 60.9% in August, a 1.0 percentage point increase from July’s reading of 59.9%.
Service-sector employment rose in August and recorded 50.2%, 1.1 percentage points higher than July’s reading of 49.1%. Eight industries reported employment growth for the month.
The new orders index was 60.8%, up 0.9 percentage points from the previous month’s reading of 59.9%. Comments from respondents include: “Starting to see some relief from cost pressures; the overall supply environment is healthy. [Accommodation & Food Services]
The supplier shipments index recorded 54.4% in August, down 3.3 percentage points from the previous month. A reading above 50% indicates slower deliveries.
Read the ISM Release.