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Services Sector Growth Rate Accelerates in May

June 06, 2014, 06:28 AM
Filed Under: Economy

Economic activity in the non-manufacturing sector grew in May for the 52nd consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®.
The report was issued by Anthony Nieves, CPSM, C.P.M., CFPM, chair of the Institute for Supply Management® (ISM®) Non-Manufacturing Business Survey Committee. "The NMI® registered 56.3 percent in May, 1.1 percentage points higher than April are reading of 55.2 percent. This represents continued growth at a faster rate in the Non-Manufacturing sector and is the highest reading for the index since August 2013, when the index registered 57.9 percent. The Non-Manufacturing Business Activity Index increased to 62.1 percent, which is 1.2 percentage points higher than the April reading of 60.9 percent, reflecting growth for the 58th consecutive month at a faster rate. The New Orders Index registered 60.5 percent, 2.3 percentage points higher than the reading of 58.2 percent registered in April. The Employment Index increased 1.1 percentage points to 52.4 percent from the April reading of 51.3 percent and indicates growth for the third consecutive month and at a faster rate. The Prices Index increased 0.6 percentage point from the April reading of 60.8 percent to 61.4 percent, indicating prices increased at a faster rate in May when compared to April. According to the NMI®, 17 non-manufacturing industries reported growth in May. The majority of respondents' comments indicate that that there is steady incremental growth and project a positive outlook on business conditions."
Industry Performance
The 17 non-manufacturing industries reporting growth in May — listed in order — are: Construction; Wholesale Trade; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Public Administration; Finance & Insurance; Educational Services; Professional, Scientific & Technical Services; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Health Care & Social Assistance; Information; Other Services; Utilities; Retail Trade; Transportation & Warehousing; and Accommodation & Food Services.

The only industry reporting contraction in May is Mining.

To read the full Non-Manufacturing ISM® Report On Business®, click here.

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