US Non-Manufacturing Growth Slows to 2-Year Low

The ISM Non-Manufacturing PMI for the United States dropped to 55.1 in June 2019 from 56.9 in the previous month and below market expectations of 55.9. The latest reading pointed to the weakest pace of expansion in the non-manufacturing sector since July 2017.

There was a slowdown in business activity (58.2 vs 61.2 in May), new orders (55.8 vs 58.6), and employment (55.0 vs 58.1). Meanwhile, prices paid inflation hit a five-month high (58.9 vs 55.4).

"According to the NMI, 16 non-manufacturing industries reported growth. Although the non-manufacturing sector’s growth rate dipped in June, the sector continues to reflect strength. The comments from the respondents reflect mixed sentiment about business conditions and the overall economy. A degree of uncertainty exists due to trade and tariffs.”

The 16 non-manufacturing industries reporting growth in June — listed in order — are: Real Estate, Rental & Leasing; Other Services; Finance & Insurance; Accommodation & Food Services; Health Care & Social Assistance; Mining; Construction; Educational Services; Professional, Scientific & Technical Services; Utilities; Public Administration; Information; Management of Companies & Support Services; Transportation & Warehousing; Retail Trade; and Wholesale Trade. The only industry reporting a decrease is Arts, Entertainment & Recreation.

US Non-Manufacturing Growth Slows to 2-Year Low

ISM | Joana Ferreira |
7/3/2019 2:09:28 PM