US Services Sector Growth At 10-Year High


The ISM Non-manufacturing PMI index registered 60.3 percent in July, 4.3 percentage points higher than the June reading of 56 percent. It is the highest reading since August of 2005 as 15 out of 17 services industries reported growth.

The Non-Manufacturing Business Activity Index increased to 64.9 percent, which is 3.4 percentage points higher than the June reading of 61.5 percent, reflecting growth for the 72nd consecutive month at a faster rate. The New Orders Index registered 63.8 percent, 5.5 percentage points higher than the reading of 58.3 percent registered in June. The Employment Index increased 6.9 percentage points to 59.6 percent from the June reading of 52.7 percent and indicates growth for the 17th consecutive month. The Prices Index increased 0.7 percentage point from the June reading of 53 percent to 53.7 percent, indicating prices increased in July for the fifth consecutive month.

According to the NMI®, 15 non-manufacturing industries reported growth in July. The majority of the respondents continue to have a positive outlook on business conditions and the overall economy. This is reflected directly by a number of new highs for some of the indexes. The 15 non-manufacturing industries reporting growth in July — listed in order — are: Arts, Entertainment & Recreation; Educational Services; Retail Trade; Real Estate, Rental & Leasing; Public Administration; Transportation & Warehousing; Finance & Insurance; Wholesale Trade; Health Care & Social Assistance; Construction; Utilities; Accommodation & Food Services; Management of Companies & Support Services; Professional, Scientific & Technical Services; and Information. The two industries reporting contraction in July are: Mining; and Other Services.

US Services Sector Growth At 10-Year High


ISM | anna@tradingeconomics.com
8/5/2015 3:08:35 PM