The ISM services index registered 56.7% in July, 1.4 percentage points higher than June’s reading of 55.3%. This reading represents the 26e consecutive month of growth for the service sector.
Thirteen service industries recorded growth in July. Respondents to the Accommodation and Food Services survey noted that “Restaurant sales have slowed in recent weeks (due to) post-holiday factors and seasonality, but we also hear due to pressure from consumers, especially fuel and food prices,” construction survey respondents said. “interest rates have had a significant impact on the residential construction market”, and respondents from educational services noted that “higher education is growing, with an increase in the number of applicants”.
The business activity index recorded 59.9% in July, an increase of 3.8 percentage points from June’s reading of 56.1%.
Employment in the service sector contracted in July and recorded 49.1%, 1.7 percentage points higher than June’s reading of 47.4%. Eight industries reported employment growth for the month.
The new orders index was 59.9%, up 4.3 percentage points from the previous month’s reading of 55.6%. Comments from respondents include: “New business inquiries” and “Moderate increase in volume from previous month”.
The supplier shipments index registered 57.8% in July, down 4.1 percentage points from the previous month. A reading above 50% indicates slower deliveries.
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