ISM’s monthly non-manufacturing report is out.
The headline index rose to 56.0 in July from 52.2 in June, coming in well above the consensus estimate of 53.1.
The business activity/production sub-index surged to 60.4 in July from 51.7 in June.
The new orders index advanced to 57.7 from 50.8.
The employment sub-index fell to 53.2 from 54.7, suggesting a robust but slowing pace of hiring.
At right is a breakdown of the various sub-indices contained in the report.
Below is what respondents to the survey from various industries were saying in July:
- “The economy seems to be getting stronger with commodity prices increasing.” (Information)
- “Sequestration and healthcare reform causing uncertainty and lower revenues.” (Health Care & Social Assistance)
- “Business orders continue to grow, but at a slow pace. We are seeing growth in areas where we have been flat for many months. Economy seems to be stabilizing in some areas and heating up in others.” (Professional, Scientific & Technical Services)
- “The auto industry continues to be strong, and we expect it to continue throughout 2013.” (Retail Trade)
- “Competitive environment remains challenging.” (Accommodation & Food Services)
- “Local business continues at same pace as last year. Capital investment continues to be positive.” (Wholesale Trade)