*Number of months moving in current direction. Non-Manufacturing ISM® Report On Business® data is seasonally
adjusted for the Business Activity, New Orders, Prices and Employment Indexes.
NON-MANUFACTURING JULY 2017 Analysis by Anthony Nieves, CPSM, C. P. M., A. P. P., CFPM, Chair of the Institute for Supply Management® Non-Manufacturing Business Survey Committee.
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® Report On Business®.
The NMI® registered 53.9 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 Prices Index increased 3. 6 percentage
NON-MANUFACTURING AT A GLANCE
points from the June reading of 52.1 percent to 55.7 percent,
indicating prices increased in July for the second consecutive
month. 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. 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 &
Index Jul Index Jun Index %Point Change Direction Rateof Change Trend* (months)
NMI® 53.9 57.4 - 3. 5 Growing Slower 91
BusinessActivity 55.960.8 - 4. 9 Growing Slower 96
New Orders 55.1 60.5 - 5. 4 Growing Slower 96
Employment 53.6 55.8 - 2. 2 Growing Slower 41
Supplier Deliveries 51.0 52.5 - 1. 5 Slowing Slower 19
Inventories 56.5 57.5 - 1.0 Growing Slower 4
Prices 55.7 52.1 + 3. 6 Increasing Faster 2
Backlog of Orders 52.0 52.5 -0.5 Growing Slower 6
New Export Orders 53.0 55.0 - 2.0 Growing Slower 6
Imports 51.5 51.0 +0.5 Growing Faster 2
Inventory Sentiment 67.5 62.0 + 5. 5 Too High Faster 242
OVERALL ECONOMY Growing Slower 96
Non-Manufacturing Sector Growing Slower 91
Commodities Up in Price: Aircraft Parts; Bacon ( 2); Beef ( 5); Beef Products ( 2); Cheese; Copper Wire; Corrugated Boxes ( 3); Dairy* ( 2); #1 Diesel
Fuel ( 2); Fuel; Labor ( 4); Labor — Construction ( 5); Lumber Products — Plywood and Spruce; Medical Gases; Medical/Surgical Supplies; Medical
Equipment; Passenger Vans; Paper ( 2); Paper Products; Pork Products; Seafood Products; Steel Products ( 8); and #10 Window Envelopes.
Commodities Down in Price: Dairy*; Gasoline; and Lumber — Pine.
Commodities in Short Supply: Chemical Products; Labor — Construction ( 16); Labor — Services ( 3); Labor — Temporary ( 2); Laboratory
Supplies ( 2); and Medical Supplies ( 2).
2017 2016 2015
48.9% = Non-Manufacturing Overall
Economy Breakeven Line
50% = Non-Manufacturing Economy
In July, the NMI® registered 53.9 percent, 3. 5 percentage points lower than the 57.4
percent registered in June, indicating continued growth in the non-manufacturing
sector for the 91st consecutive month. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates
the non-manufacturing sector is generally contracting. An NMI® above 48.9 percent,
over a period of time, generally indicates an expansion of the overall economy.
✣Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal
Note: The number of consecutive months the commodity is listed is indicated after each item. *Reported as both up and down in price.