Nonmanufacturing Activity Suggests Slower U.S. Growth

Jan. 13, 2005
By John S. McClenahen The U.S. economy continues to recover from the 2001 recession but at a slower rate than projected--or hoped--just a few months ago. The latest evidence came July 6, when the Tempe, Ariz.-based Institute for Supply Management ...
ByJohn S. McClenahen The U.S. economy continues to recover from the 2001 recession but at a slower rate than projected--or hoped--just a few months ago. The latest evidence came July 6, when the Tempe, Ariz.-based Institute for Supply Management (ISM) reported that its business activity index for the nonmanufacturing sector of the economy was at 59.9% in June, down 5.3 percentage points from Mays 65.2%. Tuesdays nonmanufacturing report followed by less than a week ISMs July 1 report that the rate of growth in U.S. manufacturing had slowed in June, down 1.7 percentage points to 61.1% in June from 62.8% in May. However, both manufacturing and nonmanufacturing grew last month, with their business activity indexes well above the 50% mark that separates general expansion from contraction. Among ISMs 17 nonmanufacturing groups, those reporting the highest rates of growth in June were transportation, utilities, agriculture, real estate and business services. Wholesale trade was the only one to report a contraction in business activity.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!