Wednesday, June 4, 2014

ISM Nonmanufacturing Index Rose in May

The ISM nonmanufacturing index improved for the third consecutive month, growing 1.1 points to 56.3. The index finally recovered from the winter and is at its highest level since August 2013. The index has been above its expansionary threshold of 50 for over year now. The details of the report were very strong, aside from one weak spot - exports.

Business output grew to 62.1 in May. New orders gained 2.3 points, settling at 60.5. The employment index improved to 52.4, but it remains below March’s value, along with levels reached last year.

There were still a few weak spots in the report. Exports decline 4.0 points to 53.0. This hurts the nominal trade deficit and GDP.

Read the ISM release.

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