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Wednesday, July 6, 2016

ISM: Non-Manufacturing Sector Expands

The ISM Non-Manufacturing Index registered 56.5 points in June, up 3.6 points from May’s rate and marking the 77th consecutive month of growth in the sector. Fifteen non-manufacturing industries reported growth in June, while three reported contraction.


Growth in the Business Activity Index rose to 59.5 points, up 4.4 points from May’s reading. Respondents reported seeing “greater demand for services by customers” along with increased month-to-month and year-over-year sales. Fourteen of the eighteen industries surveyed reported growth, while two industries, Professional, Scientific & Technical Services and Educational Services, reported contraction.

Non-manufacturing employment grew in June after contracting in May. The index rose 3 points to 52.7. Comments from respondents include: “Hiring to address open positions and workload” and “Higher volumes – higher direct labor levels.” Twelve industries reported increasing employment during the month, while two industries, Educational Services and Other Services, reported contraction.

The New Orders Index registered 59.9 points, up 5.7 from May. Some respondents cited increased marketing and job awards as a reason for the rise in new orders. Fifteen industries reported growth, while three reported contraction.

Supplier deliveries slowed for the sixth consecutive month as the index registered 54.0 points (readings above 50 for this index indicate slower deliveries). Ten industries reported slowed deliveries while only the Agriculture industry reported faster deliveries.

Read the ISM release.
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