Economic activity in the non-manufacturing sector grew in June for the 30th consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.
The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee."The NMI registered 52.1 percent in June, 1.6 percentage points lower than the 53.7 percent registered in May. This indicates continued growth this month at a slower rate in the non-manufacturing sector.
The Non-Manufacturing Business Activity Index registered 51.7 percent, which is 3.9 percentage points lower than the 55.6 percent reported in May, reflecting growth for the 35th consecutive month.
The New Orders Index decreased by 2.2 percentage points to 53.3 percent, and the Employment Index increased by 1.5 percentage points to 52.3 percent, indicating continued growth in employment at a faster rate.
The Prices Index decreased 0.9 percentage point to 48.9 percent, indicating lower month-over-month prices for the second consecutive month. According to the NMI, 12 non-manufacturing industries reported growth in June. Respondents' comments are mixed and vary by industry and company."
Industry Performance
The 12 non-manufacturing industries reporting growth in June — listed in order — are:
- Educational Services
- Arts, Entertainment & Recreation
- Management of Companies & Support Services
- Retail Trade
- Utilities
- Transportation & Warehousing
- Accommodation & Food Services
- Public Administration
- Construction
- Information
- Finance & Insurance
- Wholesale Trade
The five industries reporting contraction in June are:
- Mining
- Agriculture, Forestry, Fishing & Hunting
- Health Care & Social Assistance
- Real Estate, Rental & Leasing
- Professional, Scientific & Technical Services
What Respondents are Saying
- "General state of business this month is flat, with no changes." (Construction)
- "Business is steady and an increase over last month, as we begin our peak season." (Arts, Entertainment & Recreation)
- "We are starting to experience a slowdown from the modest, grinding improvements our market areas have been experiencing of late." (Finance & Insurance)
- "Patient counts continue to be lower than budget." (Health Care & Social Assistance)
- "Business is still growing, but there has been a definite slowing in growth." (Wholesale Trade)
- "We have noticed a slowing of customer counts and sales over the last 30 to 60 days, compared to the same period last year." (Accommodation & Food Services)
- "Stable business globally, but softening backlog as clients further tighten discretionary spend." (Professional, Scientific & Technical Services).
Read the full June Non-Manufacturing ISM Report On Business.