Economic activity in the services sector grew in July for the 14th month in a row, with the rate of expansion hitting an all-time high, according to the latest Services ISM Report on Business from the Institute for Supply Management.
“The Services PMI registered another all-time high of 64.1%, which is four percentage points higher than the June reading of 60.1 and eclipses the previous record of 64% in May 2021,” Anthony Nieves, CPSM, CPM, APP, CFPM, chair of the Institute for Supply Management’s services business survey committee, said. “The July reading indicates the 14th straight month of growth for the services sector, which has expanded for all but two of the last 138 months.
“The Supplier Deliveries Index registered 72%, up 3.5 percentage points from June’s reading of 68.5%. (Supplier Deliveries is the only ISM Report on Business index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Prices Index registered 82.3%, up 2.8 percentage points from the June figure of 79.5% and its second-highest reading ever behind September 2005 (83.5%).
“According to the Services PMI, 17 services industries reported growth. The composite index indicated growth for the 14th consecutive month after a two-month contraction in April and May 2020. The rate of expansion in the services sector recorded another all-time high. The Employment Index reflected growth, even though the constrained labor pool continues to be an issue. Materials shortages, inflation and logistics continue to negatively impact the continuity of supply.”
Finance and insurance, construction and wholesale trade were among the 17 services industries that reported growth in July. No services industries reported a decrease in July.
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