Wednesday, August 3, 2011

ISM Non-Manufacturing Fell to 52.7

In July the Institute for Supply Management’s Non-Manufacturing Index fell 0.6 percentage points to 52.7, down from 53.3 in June. Despite the drop, the index remains over 50, which is the threshold for growth. As such, the decline still represents expansion, but just at a slower pace than what occurred in May.

What was concerning about this report were the details. The employment index dropped in July, to 52.5 from 54.1, after increasing marginally the previous month. New orders fell as well from to 51.7 from 53.6. Export orders fell sharply as well, to 49.0, and now sit below their expansionary threshold. Although these numbers are down, many still represent growth. This report shows that growth is occurring, just at a frustratingly slow pace.

Read the report.

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