ISM Non-Manufacturing Growth Now 65 Consecutive Months

The Non-Manufacturing ISM Report on Business registered at 56.0% in June, up 0.3% from the May reading of 55.7%. It was shown to represent continued growth in the non-manufacturing sector at a slightly faster rate. Bloomberg had a consensus estimate for a reading of 56.0%.

Details were as follows:

• Non-Manufacturing Business Activity Index increased to 61.5%, which is 2.0 percentage points higher than the May reading of 59.5%, reflecting growth for the 71st consecutive month at a faster rate.
• New Orders Index registered 58.3%, 0.4 percentage point higher than the reading of 57.9% registered in May.
• Employment Index decreased 2.6 percentage points to 52.7% from the May reading of 55.3% and indicates growth for the 16th consecutive month.
• Prices Index fell by 2.9 percentage points from the May reading of 55.9% to 53.0%, indicating prices increased in June for the fourth consecutive month.

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ISM also showed that 15 non-manufacturing industries reported growth in June. The majority of respondents’ comments were positive about business conditions and the economy. The three industries reporting contraction were mining (includes oil), other services and construction.

It may be worth noting that imports, at 48.0%, was the only component with a reading under 50.0%. That was down 5.5 points from the 53.5% in May.