ISM Non-Manufacturing PMI Unexpectedly Rises to 56.9 in August
2022.09.09 05:00
The U.S. services sector unexpectedly saw activity accelerate in August, according to the latest survey from the Institute for Supply Management, in a sign of potential economic resilience despite concerns over a broader slowdown.
The ISM non-manufacturing purchasing managers index rose to 56.9 during the period, up marginally from 56.7 in July. Economists had expected the reading to dip to 55.1.
A level above 50 indicates expansion in the sector, which makes up nearly two-thirds of the U.S. economy.
“The services sector had a slight uptick in growth for the month of August due to increases in business activity, new orders and employment,” said Anthony Nieves, chair of the ISM Services Business Survey Committee, in a statement. “[T]here are some supply chain, logistics and cost improvements; however, material shortages remain a challenge.”
Meanwhile, new orders received by services companies increased to 61.8 from 59.9. The sector’s employment measure also moved higher to 50.2 from 49.1 as the American labor market remains tight, adding further urgency to the Federal Reserve’s push to hike interest rates in a bid to relax demand and cool red-hot inflation.
Supplier deliveries fell to 54.5, while prices paid by services firms for inputs dropped to their lowest mark since January 2021, hinting at a slight easing in inflationary pressures.
Elsewhere, the ISM’s closely watched monthly manufacturing survey held steady at 52.8, also above forecasts, suggesting that that industry is in fairly robust health as well.
