July 2017 Non-Manufacturing ISM Report on Business

TEMPE, Ariz., Aug. 4 -- The Institute for Supply Management issued the following news release:

Economic activity in the non-manufacturing sector grew in July for the 91st consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM(R) Report On Business(R).

The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management(R) (ISM(R)) Non-Manufacturing Business Survey Committee: "The NMI(R) registered 53.9 percent, which is 3.5 percentage points lower than the June reading of 57.4 percent. This represents continued growth in the non-manufacturing sector at a slower rate. The Non-Manufacturing Business Activity Index decreased to 55.9 percent, 4.9 percentage points lower than the June reading of 60.8 percent, reflecting growth for the 96th consecutive month, at a slower rate in July. The New Orders Index registered 55.1 percent, 5.4 percentage points lower than the reading of 60.5 percent in June. The Employment Index decreased 2.2 percentage points in July to 53.6 percent from the June reading of 55.8 percent. The Prices Index increased 3.6 percentage points from the June reading of 52.1 percent to 55.7 percent, indicating prices increased in July for the second consecutive month. According to the NMI(R), 15 non-manufacturing industries reported growth. The non-manufacturing sector did not sustain the previous rate of growth and cooled-off in July. The majority of respondents' comments were mostly positive about business conditions and the state of the economy."

INDUSTRY PERFORMANCE

The 15 non-manufacturing industries reporting growth in July -- listed in order -- are: Accommodation & Food Services; Information; Educational Services; Other Services; Utilities; Public Administration; Wholesale Trade; Retail Trade; Mining; Real Estate, Rental & Leasing; Construction; Transportation &Warehousing; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Finance & Insurance. The two industries reporting contraction in July are: Management of Companies &Support Services; and Agriculture, Forestry, Fishing & Hunting.

WHAT RESPONDENTS ARE SAYING ...

* "A typical and expected midsummer slowdown in hiring activity by employers is causing a normal slowdown in business for this time of year. We expect a sharp ramp-up of business activity over the next three months." (Management of Companies & Support Services)

* "Quiet time of year for us, with focus on busy August through December peak season to come." (Information)

* "Through the first half of 2017, revenue and profits are ahead of projections and holding steady. Minimal expansion expected through year end 2017." (Finance & Insurance)

* "Business volume slowed some in June." (Health Care & Social Assistance)

* "We are still experiencing an increased activity level over last month, though the rate of growth seems to be flattening somewhat." (Mining)

* "Pork bellies trending higher in price. Beef, specifically grilling meats, still remain a bit high, even after the Fourth of July holiday. Some Asian vegetables are in short supply due to local grower issues." (Accommodation & Food Services)

* "Business in third quarter is looking up, but it may be delayed from slower than expected second quarter. The next couple of months will determine the outcome." (Professional, Scientific & Technical Services)

* "Overall business conditions remained stable and flat from the previous month." (Retail Trade)

* "In general, a very stable sales month; flat to very slight increases in activity. Some slight price declines for products." (Wholesale Trade)

See table here (https://www.instituteforsupplymanagement.org/about/MediaRoom/newsreleasedetail.cfm?ItemNumber=30887).