US Non Manufacturing Sector Growth Slows to 3-Year Low
The ISM Non-Manufacturing PMI for the United States dropped to 53.7 in July 2019 from 55.1 in the previous month and below market expectations of 55.5. The latest reading pointed to the weakest pace of expansion in the non-manufacturing sector since August 2016, as business activity and new orders grew at a softer pace.
8/5/2019 2:07:20 PM
There was a slowdown in business activity (53.1 vs 58.2 in June), new orders (54.1 vs 55.8), and prices paid (56.5 vs 58.9). Meanwhile, employment growth accelerated (56.2 vs 55.0).
According to the NMI®, 13 non-manufacturing industries reported growth. The non-manufacturing sector’s rate of growth continued to cool off. Respondents indicated ongoing concerns related to tariffs and employment resources. Comments remained mixed about business conditions and the overall economy.”
The 13 non-manufacturing industries reporting growth in July — listed in order — are: Accommodation & Food Services; Utilities; Professional, Scientific & Technical Services; Real Estate, Rental & Leasing; Transportation & Warehousing; Construction; Information; Other Services; Finance & Insurance; Public Administration; Management of Companies & Support Services; Mining; and Health Care & Social Assistance. The five industries reporting a decrease are: Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Retail Trade; Wholesale Trade; and Educational Services.