US Services Sector Growth Slows to 6-1/2-Year Low: ISM


The ISM Non-Manufacturing PMI index fell 4.1 percentage points to 51.4 percent in August of 2016 from 55.5 in July, well below market expectations of 55. It is the lowest reading since February of 2010 as activity, new orders and employment all slowed.

The Non-Manufacturing Business Activity Index decreased substantially to 51.8 percent, 7.5 percentage points lower than the July reading of 59.3 percent, reflecting growth for the 85th consecutive month, at a notably slower rate in August. 

The New Orders Index registered 51.4 percent, 8.9 percentage points lower than the reading of 60.3 percent in July. 

The Employment Index decreased 0.7 percentage point in August to 50.7 percent from the July reading of 51.4 percent. 

The Prices Index decreased 0.1 percentage point from the July reading of 51.9 percent to 51.8 percent, indicating prices increased in August for the fifth consecutive month. 

The 11 non-manufacturing industries reporting growth in August — listed in order — are: Utilities; Real Estate, Rental & Leasing; Accommodation & Food Services; Finance & Insurance; Educational Services; Health Care & Social Assistance; Public Administration; Management of Companies & Support Services; Professional, Scientific & Technical Services; Information; and Construction. The seven industries reporting contraction in August — listed in order — are: Other Services; Mining; Agriculture, Forestry, Fishing & Hunting; Transportation & Warehousing; Wholesale Trade; Retail Trade; and Arts, Entertainment & Recreation.

US Services Sector Growth Slows to 6-1/2-Year Low: ISM


ISM | Joana Taborda | joana.taborda@tradingeconomics.com
9/6/2016 3:11:49 PM