US Service Sector Growth Accelerates in August

The ISM non-manufacturing index registered 59.6 percent in August, 0.9 percentage point higher than the July reading of 58.7 percent. It is the highest reading since 2005.

The Non-Manufacturing Business Activity Index increased to 65 percent, which is 2.6 percentage points higher than the July reading of 62.4 percent, reflecting growth for the 61st consecutive month at a faster rate. This is the highest reading for the index since December of 2004 when the index also registered 65 percent.

The New Orders Index registered 63.8 percent, 1.1 percentage points lower than the reading of 64.9 percent registered in July.

The Employment Index increased 1.1 percentage points to 57.1 percent from the July reading of 56 percent and indicates growth for the sixth consecutive month.

The Prices Index decreased 3.2 percentage points from the July reading of 60.9 percent to 57.7 percent, indicating prices increased at a slower rate in August when compared to July.

According to the NMI, 15 non-manufacturing industries reported growth in August. Respondents' comments vary by business and industry. The majority of the comments reflect continued optimism in regards to business conditions. Some respondents indicate that there may be some tapering off in the recent strong rate of growth in the non-manufacturing sector.

US Service Sector Growth Accelerates in August

ISM | Joana Taborda |
9/4/2014 3:14:03 PM