Economic activity in the non-manufacturing sector grew in June for the 113th consecutive month, according to a recent report from ISM.
The Non Manufacturing Index registered 55.1%, which is 1.8 percentage points lower than the May reading of 56.9%.
This represents continued growth in the non-manufacturing sector, at a slower rate. This is the index’s lowest reading since July 2017, when it registered 55.1%.
“Although the non-manufacturing sector’s growth rate dipped in June, the sector continues to reflect strength,” said. Anthony Nieve, Chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee. “The comments from the respondents reflect mixed sentiment about business conditions and the overall economy. A degree of uncertainty exists due to trade and tariffs.”
A few comments from the survey reflect the sector’s assessment of the economy
--The largest business condition impacting general purchasing operations is the increased cost of goods due to the tariffs placed on China.” (Retail Trade)
--“Business continues to run well, [with] indications of slowing customer demand and improvement in supplier delivery performance.” (Transportation & Warehousing)
--“The continued restructuring of ocean-carrier routing is still causing havoc in the supply chain. We are experiencing minimal impact due to an increase in inventory levels.” (Wholesale Trade)
