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ISM Non-Manufacturing Index dipped to 61.7% in August
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Economic activity in the services sector grew in August for the 15th month in a row, say the nation’s purchasing and supply executives in the latest Services ISM® Report On Business®.
The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: “The Services PMI® registered 61.7 percent, 2.4 percentage points lower than the all-time high reading of 64.1 in July. The August reading indicates the 15th straight month of growth for the services sector, which has expanded for all but two of the last 139 months.
“The Supplier Deliveries Index registered 69.6 percent, down 2.4 percentage points from July’s reading of 72 percent. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Prices Index registered 75.4 percent, down 6.9 percentage points from the July figure of 82.3 percent.
“According to the Services PMI®, 17 services industries reported growth. The composite index indicated growth for the 15th consecutive month after a two-month contraction in April and May 2020. There was a pullback in the rate of expansion in the month of August; however, growth remains strong for the services sector. The tight labor market, materials shortages, inflation and logistics issues continue to cause capacity constraints,” says Nieves.
INDUSTRY PERFORMANCE
The 17 services industries reporting growth in August — listed in order — are: Accommodation & Food Services; Retail Trade; Construction; Educational Services; Information; Mining; Other Services; Utilities; Public Administration; Transportation & Warehousing; Health Care & Social Assistance; Wholesale Trade; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Finance & Insurance; Real Estate, Rental & Leasing; and Professional, Scientific & Technical Services. The only industry to report a decrease is Arts, Entertainment & Recreation
Posted: September 3, 2021 Friday 10:00 AM