ISM August non-manufacturing index 56.4 vs 54.0 expected

Author: Adam Button | Category: News

ISM services for August 2019:


 Details:
  •     prices paid 58.2 versus 56.5 last month
  •     new orders 60.3 versus 54.1  last month
  •     employment 53.1 versus 56.2  last month
  •     backlog of orders 49.0 versus 53.5 last month
  •     inventory change 55.0 versus 50.0 last month
  •     inventory sentiment 56.0 versus 60.5 last month
  •     new export orders 50.5 versus 53.5 last month
  •     imports 50.5 versus 53.5 last month
  •     business activity 61.5 vs 53.1 last month
Commentary in the report:

  • "Tariffs are affecting the cost of goods on all items imported from China. We've experienced a 10-percent increase on Chinese ingredients which kicked in on August 1." (Accommodation & Food Services)
  • "Generally good. Volumes are near expectations; however, commodity volatility is creating some challenges." (Agriculture, Forestry, Fishing & Hunting)
  • "Lower mortgage rates have not had a great effect on new residential construction sales. Tariffs continue to apply upward cost pressures to current supply chains." (Construction)
  • "Trading volumes slowed, despite an extra day in the month for financial market activity. The competitive landscape for financial services continues to be challenging, with new lower cost offerings from competitors and new startups. At the end of the month, the federal funds rate was lowered to 2.25 percent, which affects company revenues." (Finance & Insurance)
  • "The advertising specialties industry continues to remain robust, despite the escalation of tariffs on apparel and other related promotional products. Many suppliers bought deep into inventory to avoid price increases; however, pricing effects from the tariffs are trickling into the supply chain. Clients are still converting quotes into orders, and we are still on track for a record sales year." (Management of Companies & Support Services)
  • "Summer doldrums appear to be over, and the fourth quarter will be solid, with higher-than-expected revenues." (Professional, Scientific & Technical Services)
  • "Construction markets remain busy. Projects that were delayed are trying to get back on track." (Real Estate, Rental & Leasing)
  • "As Q2 wraps up for many retailers, we begin focusing on holiday readiness. In turn, head count and requests for additional products and services will gradually increase." (Retail Trade)
  • "Our summer load factor was high, and as we transition to the holiday season, we are forecasting a high load as well." (Transportation & Warehousing)

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