The Institute for Supply Management’s (ISM) index of nonmanufacturing business conditions hit a six-month high in August. New orders and acceleration in hiring contributed.
Key Point Nonmanufacturing Headline Index rose nearly 2 points to 54.5 Median market forecast compiled by Bloomberg was 52.5, above all expectations
The unexpected strength of the ISM index highlights the strength of consumer spending and the economy as a whole. Resilient household spending is helping to boost jobs, fueling optimism that the U.S. can avoid a recession.
Activities expanded in 13 industries, including real estate, leasing, leasing, and lodging/restaurant services.
The employment index hit its highest level since November 2021, reaffirming the widespread employment seen in last week’s jobs report. Job growth also allowed companies to proceed with order backlogs.
Meanwhile, material costs and wages accelerated in August, pushing the group’s input price index to its highest level in four months. If service sector costs continue to rise, inflation could become protracted.
See table for detailed statistics.
Original title:US Service Gauge Rises to Six-Month High, Topping All Forecasts(excerpt)
(adds and updates stats details)
2023-09-06 14:07:00
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