Tuesday, August 5, 2014

ISM Nonmanufacturing Index at Highest Level Ever

In July, the ISM nonmanufacturing index reached the highest level ever since the index’s inception in January 2008. The index was 58.7 in July, a 2.7 point increase from the month prior. Any reading above 50 indicates industry expansion and July is the 54th month the index has increased.

The employment index saw strong growth, improving 1.6 points to 56.0. It is the highest reading since January. The employment gains in July coincide with a strong employment reading released last week by the Bureau of Labor Statistics. Without any major upcoming economic hurdles, employment index should maintain its healthy path.

Business output shot up to 62.4, the highest recording since February 2012. New orders also saw robust gains in July, settling at 64.9, and the highest reading since January 2011. However, exports declined 2.0 points, which may hurt the nominal trade deficit, and GDP.

Read the ISM report.

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