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Report: US services growth continued in August

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Closely-watched index beats expectations, but falls off from July’s ten-year high.

 

The ISM Non-Manufacturing Index fell to 59.0% in August, compared to 60.3% in July, which was the highest reading in a decade. NMI readings above 50.0 signal expansion, while readings below 50.0 indicate contraction. 

The reading was above analysts’ expectations of 58.1%.


“Overall, respondents continue to be optimistic about business conditions and the economy."

The Non-Manufacturing Business Activity Index fell to 63.9% during the month, which is 1 percentage point lower than the July reading of 64.9%, but still above expectations of 61%.

The New Orders Index fell slightly to 63.4%, 0.4 percentage points lower than the July index.

Jobs creation in the services sector continued to be strong, albeit slightly lower than in July, with the Employment Index decreasing 3.6 percentage points to 56.0%.

In commenting on the report, Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee, was upbeat. “Overall, respondents continue to be optimistic about business conditions and the economy. This is reflected by indexes that are again strong; however, lower than what was seen in July."

 

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