The Institute for Supply Management’s (ISM) index of nonmanufacturing business conditions hit a four-month high in June. Business conditions index and new orders showed expansion.
Key Point Nonmanufacturing Headline Index rose 3.6 points to 53.9, its biggest gain since January
Input prices fell to their lowest since March 2020, a welcome sign for inflation.
The business conditions index, which corresponds to production in the ISM manufacturing index, was 59.2, the highest level in five months. The index of new orders also rose.
Anthony Nieves, chairman of the ISM non-manufacturing survey committee, said in a statement: “A majority of respondents indicated that the business environment remained benign, but remained cautious about inflation and future economic prospects. ” he pointed out.
In June, 15 industries, including lodging/food services and entertainment/recreation, reported expansion.
ISM statistics indicated a healthy and resilient demand for services. Americans are discouraging selective purchases of goods, but prefer spending on experiences. This trend contributes to the divergence between the two ISM statistics.
U.S. ISM manufacturing index drops to 3-year low
The employment index hit a four-month high of 53.1, suggesting that service providers, which had contracted jobs last month, are now hiring more.
The inventory index is expanding, but the growth slows down. The index of inventory sentiment also slowed, but remained at a high level.
See table for detailed statistics.
Original title:US Services Expand by Most in Four Months on Stronger Demand(excerpt)
(adds and updates stats details)
2023-07-06 14:07:10
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