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Wednesday, August 10, 2022 12:52:17 AM EDT

Ism Services Updated 03-Aug-22 10:29AM ET

The ISM Non-Manufacturing Index for July increased to 56.7% ( consensus 53.8%) from 55.3% in June, which was the lowest reading since May 2020. The dividing line between expansion and contraction is 50.0%.

The July reading marks the 26th straight month of growth for the services sector.

The New Orders Index rose to 59.9% from 55.6%.

The Production Index increased to 59.9% from 56.1%.

The Prices Index dropped to 72.3% from 80.1%.

The Employment Index jumped to 49.1% from 47.4%.

The Supplier Deliveries Index dropped to 57.8% from 61.9%.

The Backlog of Orders Index slipped to 58.3% from 60.5%.

The key takeaway from the report is that business activity for the non-manufacturing sector accelerated in July at the same time there was a deceleration in the pace of price increases. The acceleration in overall activity, however, does not fit the idea that the Federal Reserve is going to be quick to pivot to a rate-cut cycle.
Non-Manufacturing ISM index56.755.355.957.158.3
Business Activity59.956.154.559.155.5
New Orders59.955.657.654.660.1
Deliveries (nsa)57.861.961.365.163.4
Inventories (nsa)45.047.551.052.351.7
Exports (nsa)59.557.560.958.161.0
Imports (nsa)48.046.352.852.945.0
Prices Paid72.380.182.184.683.8