The latest Non-Manufacturing ISM Report on Business, showed that economic activity in the non-manufacturing sector grew in June for the 53rd consecutive month.

“The NMI registered 56% in June, 0.3 percentage point lower than the May reading of 56.3%. This represents continued growth at a slightly slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index decreased to 57.5%, which is 4.6 percentage points lower than the May reading of 62.1%, reflecting growth for the 59th consecutive month at a slower rate.

The New Orders Index registered 61.2%, 0.7 percentage point higher than the reading of 60.5% registered in May. The Employment Index increased 2 percentage points to 54.4% from the May reading of 52.4% and indicates growth for the fourth consecutive month and at a faster rate.

The Prices Index decreased 0.2 percentage point from the May reading of 61.4% to 61.2%, indicating prices increased at a slightly slower rate in June when compared to May.

According to the NMI, 14 non-manufacturing industries reported growth in June. Respondents’ comments vary by industry and company; however, the majority indicate that steady economic growth is continuing.”

The 14 non-manufacturing industries reporting growth in June — listed in order — are: Construction; Real Estate, Rental & Leasing; Utilities; Management of Companies & Support Services; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Information; Public Administration; Retail Trade; Transportation & Warehousing; Professional, Scientific & Technical Services; Wholesale Trade; Finance & Insurance; and Other Services. The four industries reporting contraction in June are: Educational Services; Mining; Accommodation & Food Services; and Health Care & Social Assistance.

What Respondents are Saying

• “Construction industry is extremely strong [and] business conditions look positive going forward.” (Construction)
• “June occupancy was projected to be below expectation, but has actually picked up remarkably strong. June will now finish above normal.” (Accommodation & Food Services)
• “Reduced reimbursements continue to affect business decisions.” (Health Care & Social Assistance)
• “Business outlook is good, steady, but not yet strong.” (Professional, Scientific & Technical Services
• “Funding for capital projects is up in the new fiscal year’s budget.” (Public Administration)
• “Sales in many categories are improving, partially due to pent-up demand from the late arrival of spring. We believe this will carry deep into Q2 barring any unforeseen world or economic events.” (Retail Trade)
• “Strong growth continues into the second quarter.” (Wholesale Trade)

To view the full ISM report, click here.