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Services Sector Grew for 31st Consecutive Month in July

August 06, 2012, 07:30 AM
Filed Under: Economy

Economic activity in the non-manufacturing sector grew in July for the 31st consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.

The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee. “The NMI registered 52.6 percent in July, 0.5 percentage point higher than the 52.1 percent registered in June. This indicates continued growth this month at a slighter faster rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 57.2 percent, which is 5.5 percentage points higher than the 51.7 percent reported in June, reflecting growth for the 36th consecutive month. The New Orders Index increased by 1 percentage point to 54.3 percent. The Employment Index decreased by 3 percentage points to 49.3 percent, indicating contraction in employment for the first time since December 2011. The Prices Index increased 6 percentage points to 54.9 percent, indicating higher month-over-month prices when compared to June. According to the NMI, 11 non-manufacturing industries reported growth in July. Respondents’ comments are mixed and vary by industry and company.”

Industry Performance

The 11 non-manufacturing industries reporting growth in July — listed in order — are:

  • Accommodation & Food Services
  • Retail Trade
  • Utilities
  • Other Services
  • Educational Services
  • Arts, Entertainment & Recreation
  • Information
  • Real Estate, Rental & Leasing
  • Finance & Insurance
  • Public Administration
  • Management of Companies & Support Services

The seven industries reporting contraction in July — listed in order — are:

  • Mining
  • Agriculture, Forestry, Fishing & Hunting
  • Construction
  • Health Care & Social Assistance
  • Transportation & Warehousing
  • Wholesale Trade
  • Professional, Scientific & Technical Services

What Respondents are Saying…

  • “The general economy and unemployment are keeping our business flat.” (Health Care & Social Assistance)
  • “Beginning to see effects of slowing economy. New orders are down versus same time last year.” (Information)
  • “Business is slowing; input costs are weakening.” (Agriculture, Forestry, Fishing & Hunting)
  • “Seeing a slight uptick in sales revenue.” (Public Administration)
  • “Things have not changed toom uch this past month; however, we are seeing more aggressive marketing/sales efforts by suppliers hungry for business.” (Transportation & Warehousing)
  • “Overall, we are still seeing growth over last year, but the sequential growth has gone flat to negative.” (Wholesale Trade)

Read the full July 2012 Non-Manufacturing ISM Report On Business.

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