TOP PERFORMING INDUSTRIES
The 14 industries reporting growth in June — listed in order — are: Construction; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Other Services(d); Accommodation & Food Services; Finance & Insurance; Educational Services; Public Administration; Utilities; Retail Trade; Management of Companies & Support Services; Information; Health Care & Social Assistance; and Wholesale Trade. There are no industries reporting decreased activity from May to June.
WHAT RESPONDENTS ARE SAYING …
• “Business remains steady and as predicted.” (Construction)
• “General business is on the rise with good rates holding through the Q2 period.” (Real Estate, Rental & Leasing)
• “Although business this month is better than last month, business in 2007 has been worse than business in 2006.” (Retail Trade)
• “In general business is stable.” (Agriculture, Forestry, Fishing & Hunting)
• “Fuel prices remain high with many vendors adding a fuel surcharge.” (Professional, Scientific & Technical Services)
Building Materials (2); Car Rentals (2); Car Service; Cheese; Contract Labor; Copper Wire; Corrugated; #1 Diesel Fuel(c) (4); #2 Diesel Fuel(c) (4); Electricity; Fuel (5); Fuel Surcharges; Gasoline(c) (8); Hotel Costs (13); Paper (41); Paper Products (3); Poly Bags; Postal Rates; and Roofing.
Business Activity
ISM’s Non-Manufacturing Business Activity Index in June registered 60.7 percent compared to the 59.7 percent registered in May, indicating a faster rate of growth in business activity in June. The implication is that non-manufacturing business activity is continuing to increase for the 51st consecutive month. Fourteen industries reported increased business activity, and no industry reported decreased activity for the month of June.
The industries reporting growth of business activity in June are: Construction; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Other Services(d); Accommodation & Food Services; Finance & Insurance; Educational Services; Public Administration; Utilities; Retail Trade; Management of Companies & Support Services; Information; Health Care & Social Assistance; and Wholesale Trade.
New Orders
ISM’s Non-Manufacturing New Orders Index decreased to 56.9 percent in June from the 57.4 percent registered in May. This indicates continued expansion of new orders but at a slower rate than in May. Comments from members include: “New customer programs” and “Slight seasonal increase.”
Industries reporting growth of new orders in June are: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Accommodation & Food Services; Other Services(d); Retail Trade; Educational Services; Finance & Insurance; Public Administration; Management of Companies & Support Services; Utilities; and Health Care & Social Assistance. The industries reporting contraction of new orders in June are: Transportation & Warehousing; Construction; Professional, Scientific & Technical Services;
Wholesale Trade; and Information.
Employment
Employment activity in the non-manufacturing sector increased at a slightly faster rate in June compared to May. This was the 35th consecutive monthly increase in non-manufacturing employment. ISM’s Non-Manufacturing Employment Index for June is 55 percent, a 0.1 percentage point increase from the 54.9 percent reported in May. Fourteen industries reported increased employment, two reported a decrease, and two indicated employment is unchanged from May. Comments from respondents include: “More stores”; “Continued expansion of business”; and “Still hiring to support new projects.”
The industries reporting growth in employment in June are: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Retail Trade; Management of Companies & Support Services; Finance & Insurance; Utilities; Professional, Scientific & Technical Services; Accommodation & Food Services; Information; Educational Services; Wholesale Trade; and Health Care & Social Assistance. The two industries reporting a reduction in employment in June are: Mining and Public Administration.
Supplier Deliveries
In June, the delivery performance of suppliers to non-manufacturing organizations was slower than in May. The index registered 50.5 percent, 1 percentage point higher than in May. A reading above 50 percent indicates slower deliveries.
The industries reporting slowing in supplier deliveries in June are: Transportation & Warehousing; Educational Services; Public Administration; Utilities; Wholesale Trade; and Professional, Scientific & Technical Services. The industries reporting faster supplier deliveries in June are: Arts, Entertainment & Recreation; Construction; and Information.
Prices
Prices paid by non-manufacturing organizations for purchased materials and services increased in June for the 49th consecutive month. ISM’s Non-Manufacturing Prices Index for June is 65.5 percent, 0.9 percentage point lower than May’s index of 66.4 percent. In June, the percentage of respondents reporting higher prices decreased by 6 percentage points to 35 percent as compared to May. The percentage indicating no change increased from 55 percent in May to 62 percent in June. The percentage of respondents noting lower prices decreased by 1 percent to 3 percent in June.
The industries reporting an increase in prices paid in June are: Management of Companies & Support Services; Accommodation & Food Services; Real Estate, Rental & Leasing; Educational Services; Wholesale Trade; Arts, Entertainment & Recreation; Utilities; Finance & Insurance; Health Care & Social Assistance; Professional, Scientific & Technical Services; Retail Trade; Construction; and Public Administration. The one industry reporting a decrease in prices in June is Information.
New Export Orders
Orders and requests for services and other non-manufacturing activities to be provided outside of the United States by domestically based personnel in June increased for the third consecutive month after a month of contraction. The New Export Orders Index for June is 59 percent, compared to May’s index of 66 percent. Of the total respondents in June, 73 percent indicated they either do not perform, or do not separately measure, orders for work outside of the United States.
The industries reporting an increase in new export orders in June are: Mining; Management of Companies & Support Services; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Finance & Insurance; and Wholesale Trade. The one industry reporting a decrease in export orders is
Public Administration.
Imports
In June, the ISM Non-Manufacturing Imports Index registered 57.5 percent, 2 percentage points higher than May’s index of 55.5 percent, indicating that use of imports increased in June when compared to May. In June, 62 percent of respondents reported that they do not use, or do not track, the use of imported materials.
The industries reporting an increase in the use of imports in June are: Finance & Insurance; Management of Companies & Support Services; Arts, Entertainment & Recreation; Other Services(d); Utilities; Health Care & Social Assistance; Retail Trade; and Wholesale Trade. The one industry reporting a decrease in imports for the month of June is Public Administration.
