Non-Manufacturing Gain Exceeds Expectations

By John S. McClenahen After a couple of months of slower rates of growth, the non-manufacturing sector of the U.S. economy accelerated in July and beat most economists' expectations in the process. The Institute for Supply Management's (ISM) business ...
Jan. 13, 2005
ByJohn S. McClenahen After a couple of months of slower rates of growth, the non-manufacturing sector of the U.S. economy accelerated in July and beat most economists' expectations in the process. The Institute for Supply Management's (ISM) business activity index for non-manufacturing was 64.8% last month, up nearly five percentage points from June's 59.9% "Non-manufacturing business activity increased for the 16th consecutive month in July," notes Ralph G. Kauffman, chair of the non-manufacturing business survey committee for Tempe, Ariz.-based ISM and the coordinator of the purchasing and supply management program at the University of Houston-Downtown. "Also in July, new orders, order backlogs, imports, prices, exports and inventories increased, while employment was unchanged." Of the 17 sectors of non-manufacturing included in ISM's business activity index, 12 reported increased business activity in July, four were unchanged from June, and only one - entertainment -- reported decreased activity.
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