ISM services data for July 2019:
- Prior was 55.1
- Lowest since August 2016
Details:
- prices paid 56.5 versus 58.9 last month
- new orders 54.1 versus 55.8 last month
- employment 56.2 versus 55.0 last month
- backlog of orders 53.5 versus 56.0 last month
- inventory change 50.0 versus 55.0 last month
- inventory sentiment 60.5 versus 58.5 last month
- new export orders 53.5 versus 55.5 last month
- imports 53.5 versus 50.0 last month
- business activity 53.1 vs 58.2
This isn't a great sign on the US economy. This is still expansionary but there's a clear loss of momentum from +60 late last year.
Comments in the report:
- "Business is still strong, considering the seasonality." (Accommodation & Food Services)
- "Business volumes were flat compared to the previous month." (Health Care & Social Assistance)
- "Tariffs continue to push costs higher, and customers are looking for more discounts due to mortgage-rate fluctuations." (Construction)
- "Some uncertainty hinges on tariffs, but there have been no changes in market conditions." (Information)
- "For our company, July is looking to be a record-setting month for sales. Customers have been converting quotes to sales quicker than in past months. The tariffs have increased prices for our industry, but our clients are not balking at the slight price increases that have been passed along. We feel that (the third quarter) will be strong." (Management of Companies & Support Services)
- "It appears that the mining capital-expense environment is improving, with a good prospectus for the coming months. Our dependence on Chinese and Asian supply chains remains strong. NAFTA countries do not have the same capacity and speed." (Mining)
- "Companies involved in the oil and gas industry remain cautious relative to hiring direct employees and contingent workers, as well as investing in new capital projects. Volatility in oil price and geopolitical concerns are driving this wait-and-see approach." (Professional, Scientific & Technical Services)
- "Demand seems strong. There are still pressures for skilled labor. It is difficult to find fully qualified candidates. Suppliers are having trouble with demand." (Public Administration)
- "As our corporate objectives drive us more and more into digitization, advanced analytics, and data management in general, we are finding it increasingly difficult to find, develop and retain professional with advanced skills in these disciplines." (Retail Trade)
- "Business is somewhat slow for the first half of 2019, but it is expected to pick up for the second half." (Wholesale Trade)