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- ISM report shows US services sector growth slows in July
ISM report shows US services sector growth slows in July
The Institute for Supply Management (ISM) announced its non-manufacturing index came in at 53.9 in July, which was 3.5 percentage points lower than unrevised June figure of 57.4. That represented continued growth in the non-manufacturing sector at a slower rate. Economists had expected the ISM non-manufacturing index to ease to 57 last month. A reading above 50 signals expansion, while a reading below 50 indicates contraction.
15 of the non-manufacturing industries reported growth in July, while two recorded decline, the report said.
According to the report, the ISM's non-manufacturing business activity measure decreased to 55.9 percent in July, 4.9 percentage points lower than the June reading of 60.8 percent. That reflected growth for the 96th consecutive month, at a slightly slower rate last month. The ISM's new orders gauge fell 5.4 percentage points to 55.1 percent in July, while the inventories indicator dropped 1 percentage point to 56.5 percent, and the employment index declined 2.2 percentage points to 53.6. At the same time, the prices gauge gained 3.6 percentage points to 55.7, indicating prices increased in July for the second consecutive month.
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