Thursday, July 3, 2014

ISM Nonmanufacturing Index Dropped Slightly in June

The ISM nonmanufacturing index declined by 0.3 points in June to 56.0. However, the index is still the second highest reading all year and has been above its expansionary threshold of 50 for over year now. The details of the report were generally strong, aside from business output.

The employment index increased 2.0 points to 54.4. Following a strong June jobs report, the index should see gains next month as well. New orders increased 0.7 points to 61.2. Exports improved 2.0 points to 55.0. This helps the nominal trade deficit, and GDP.

There still was one weak spot in the report. Business output dropped to 57.5. However it still remains in expansionary territory. Moreover, due to large gains the previous two months, June’s decline may in part be an adjustment back.

Read the ISM report.

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