Service Sector in July Grows more than expected
(Best Syndication News) The Institute For Supply Management (ISM) said their non-manufacturing sector index increased 3.8 percentage points in July 2013.
Despite the good news the Dow Jones Industrial Average (DJIA) and the broader S&P 500 shrank in value in early trading. The Dow is down 37 points (-0.24%) and the S&P is down 1.84 points (-0.11%). The tech-heavy NASDAQ is up 0.65 (+0.02).
"The NMI™ registered 56 percent in July, 3.8 percentage points higher than the 52.2 percent registered in June. This indicates continued growth at a faster rate in the non-manufacturing sector”, said Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee.
“The Non-Manufacturing Business Activity Index increased substantially to 60.4 percent, which is 8.7 percentage points higher than the 51.7 percent reported in June, reflecting growth for the 48th consecutive month.”
Nieves also said the their new orders index was up 6.9 percentage points but their employment index decreased 1.5 percentage points. Both indexes are still in positive-growth territory.
Analysts had expected the non-manufacturing index (services) to hit just 53.1.
Later this week the Mortgage Bankers Association (MBA) will release their mortgage index and the Federal Reserve will release their Consumer Credit update.
By: Dan Wilson