The Institute for Supply Management (ISM) released the non-manufacturing headline index in August, rising from the previous month to a four-month high. While business conditions and new orders improved, pricing pressure continued to decline.
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Both the business conditions corresponding to the production of the ISM manufacturing industry index and the index of new orders have risen to high levels since the beginning of the year. It reflects changing spending patterns and steady growth in wages. Export orders hit the highest level in regarding a year, indicating that overseas demand is also growing stronger.
The strong data show strong consumer demand for services despite high inflation, rising interest rates and general uncertainty regarding the economic outlook.
In August, 14 industries reported expansion of activity. Growth was particularly notable in mining, real estate, rentals and leasing, utilities and construction.
The purchase price index fell to 71.5, the lowest level since January 2021. While still high, it adds another indicator of weakening inflationary pressures.
The employment index, which had been in contraction last month, rose 1.1 points to 50.2. It was suggested that employment in the service sector has increased slightly.
See table for detailed statistics.
Original title:US Services Gauge Rises to Four-Month High on Pickup in Demand(excerpt)
(Add and update stat details)
