Non-manufacturing activity turns in strong performance in August, reports ISM

The Institute for Supply Management reported today that non-manufacturing activity in August was strong, as well as record setting, on a few fronts.

The index ISM uses to measure non-manufacturing growth—known as the NMI—came in at 59.6 in August, which is up 0.9 percent over July’s 58.7, and stands as the highest NMI reading since it was added to the report in January 2008. A reading above 50 represents growth. And with the August NMI remaining above 50, economic activity in the non-manufacturing sector has grown for the last 55 months, according to ISM. The NMI’s companion index in the ISM’s monthly Manufacturing Report on Business—known as the PMI—also was up in August with a 1.9 percent increase to 59.0.

Three of the report’s four core metrics, including the NMI, were up on a sequential basis in August. Business Activity/Production was up 2.6 percent at 65.0, which topped July by 2.6 percent, and also is now its highest reading since December 2004, when it also hit 65.0. New Orders fell 1.1 percent to 63.8, and employment was up 1.1 percent at 57.1.

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