The ISM services index recorded 56.9% in August; 0.2 percentage point higher than July’s reading of 56.7%. This reading represents the 27e consecutive month of growth for the service sector.
Fourteen service industries recorded growth in August. “Growth continues – at a slightly faster pace – for the services sector, which has grown for all but two of the past 151 months. The services sector saw a slight acceleration in growth in August due to increased business activity, new orders and employment.Based on feedback from Business Survey Committee respondents, there are some improvements in supply chain, logistics and costs, however material shortages remain a challenge Employment has improved slightly despite a tight labor market.
The business activity index recorded 60.9% in August, a 1.0 percentage point increase from July’s reading of 59.9%.
Service-sector employment rose in August and recorded 50.2%, 1.1 percentage points higher than July’s reading of 49.1%. Eight industries reported employment growth for the month.
The new orders index was 60.8%, up 0.9 percentage points from the previous month’s reading of 59.9%. Comments from respondents include: “Starting to see some relief from cost pressures; the overall supply environment is healthy. [Accommodation & Food Services]
The supplier shipments index recorded 54.4% in August, down 3.3 percentage points from the previous month. A reading above 50% indicates slower deliveries.
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