- Prior was 55.3
This is a stark contrast to the S&P Global services survey, which plunged in July.
Details:
- Business activity 59.9 vs 54.0 expected (prior 56.1)
- Prices paid 72.3 vs. 80.1 last month
- Employment 49.1 vs. 47.4 last month
- New orders 59.9 vs. 55.6 last month
- Supplier deliveries 57.8 vs. 61.9 last month
- Inventories 45.0 vs. 47.5 last month
- Backlog of orders 58.3 vs. 60.5 last month
- Exports 59.5 vs. 57.5 last month
- Imports 48.0 vs. 46.3 last month
Comments in the report:
- “Restaurant sales have softened the past few weeks (due to) post-holiday and seasonality factors, but we’re also hearing because of consumer pressures, particularly fuel and food prices. Staffing remains a challenge in some markets. Many of our locations in (Los Angeles County) received news that there could be a return to (indoor) mask mandates.” [Accommodation & Food Services]
- “Interest rates have significantly impacted the homebuilding market. Cancellation rates have increased, as homebuyers can no longer afford the monthly payment. Traffic to our communities is down. Inflation has sidelined many would-be buyers.” [Construction]
- “Strengthening market overall and signs of improvement. Increased prices putting a strain on fixed budgets. There has been a shift from driving down costs to securing continuity of supply. Higher education is growing, with an increase in applicants.” [Educational Services]
- “Business continues to remain below pre-pandemic levels. (Patient) census and visits have increased but seem to have plateaued in the last six-month period.” [Health Care & Social Assistance]
- “Can feel the economy weakening. Clients are making appropriate moves in anticipation of a recession.” [Management of Companies & Support Services]
- “Hiring demand remains robust in most industry sectors. Tech has had a slowdown in hiring and layoffs. It’s still a candidate’s market, as the number of job openings across all skill levels and positions remains far greater than the number of candidates for those roles.” [Professional, Scientific & Technical Services]
- “Rising costs across the board seems to be the big focus now. Fuel and food are the most common focus but it is across the board, and there is pressure of a job market shortage for qualified workers to increase wages and other benefits.” [Public Administration]
- “(We are) in inventory reduction mode, attempting to match inventory levels to current lower sales trends.” [Retail Trade]
- “Holding steady, but some headwinds are definitely ahead on the economic front. However, supply chain issues appear to be easing, though still not great.” [Utilities]
- “Food service remains strong. Retail is softening as the mass is overly concerned about inventory and consumer spending.” [Wholesale Trade]