ISM Shows Better-Than-Expected Reading of Non-Manufacturing Sector During August
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The Institute for Supply Management announced Tuesday the service industry experienced growth slightly ahead of expectations during the month of August, helping ease investor concerns the US's largest sector was floundering.
From 52.7 in July, the ISM's index of non-manufacturing businesses rose to 53.3. With a reading above 50 percent showing signs of expansion, the August data point provides a glimmering of hope in an economy on the precipice.
New orders in the industry grew from an index reading of 51.7 in July to 52.8. The gauge of business activity decreased from 56.1 to 55.6. Prices paid during August rose month-over-month from 56.6 to 64.2.
The ISM non-manufacturing imports index grew in August from 47.5 in July to 53.5.
ISM said people in the public administration sector are seeing consumers pay the increased pricing, but sales are still below expectations. The construction sector claimed poor weather conditions during the month slowed sales and production during the month. In the agriculture, forestry, and hunting sector, demand remained flat as inflation began to show in many of the segment's input costs. Demand remains present in the professional and technical service sector, but is expected to slow in the fourth quarter.
The Dow Jones was trading down roughly 275 point prior to ISM report and is now down about 189 points. The S&P 500 and NASDAQ have also come off their lows of the day on the positive data from the ISM.
From 52.7 in July, the ISM's index of non-manufacturing businesses rose to 53.3. With a reading above 50 percent showing signs of expansion, the August data point provides a glimmering of hope in an economy on the precipice.
New orders in the industry grew from an index reading of 51.7 in July to 52.8. The gauge of business activity decreased from 56.1 to 55.6. Prices paid during August rose month-over-month from 56.6 to 64.2.
The ISM non-manufacturing imports index grew in August from 47.5 in July to 53.5.
ISM said people in the public administration sector are seeing consumers pay the increased pricing, but sales are still below expectations. The construction sector claimed poor weather conditions during the month slowed sales and production during the month. In the agriculture, forestry, and hunting sector, demand remained flat as inflation began to show in many of the segment's input costs. Demand remains present in the professional and technical service sector, but is expected to slow in the fourth quarter.
The Dow Jones was trading down roughly 275 point prior to ISM report and is now down about 189 points. The S&P 500 and NASDAQ have also come off their lows of the day on the positive data from the ISM.
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