The ISM Non-Manufacturing Index for July increased to 56.7% (Briefing.com 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 index||56.7||55.3||55.9||57.1||58.3|