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- U.S. non-manufacturing sector’s growth accelerates in August - ISM
U.S. non-manufacturing sector’s growth accelerates in August - ISM
The Institute
for Supply Management (ISM) reported on Thursday its non-manufacturing index
(NMI) came in at 56.4 in August, which was 2.7 percentage points higher than the
July reading of 53.7 percent. The August reading pointed to the fastest expansion in the services sector since May.
Economists
forecast the index to increase to 54.0 last month. A reading above 50 signals
expansion, while a reading below 50 indicates contraction.
The 16 non-manufacturing industries reported growth last month, the ISM said, adding that respondents remain concerned about tariffs and geopolitical uncertainty but are mostly positive about business conditions.
According to
the report, the ISM’s non-manufacturing business activity measure rose to 61.5 percent,
8.4 percentage points higher than the July reading of 53.1 percent. That
reflected growth for the 121st consecutive month, at a faster rate in July. The new orders gauge increased to 60.3 percent, 6.2 percentage points higher than
the reading of 54.1 percent in July. The Prices Index advanced 1.7 percentage
points from the July reading of 56.5 percent to 58.2 percent, indicating that
prices increased in August for the 27th consecutive month. Meanwhile, the
employment indicator fell 3.1 percentage points in August to 53.1 percent from
the July reading of 56.2 percent.
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