The ISM Services Index signed up 54.5%, 1.8 portion points (pp) greater than July’s reading of 52.7%. The composite index suggested development in August for the 8th successive month after a reading of 49.3% in December 2022, which was the very first contraction given that June 2020 (45.4%).
“Thirteen industries reported growth in August. The Services PMI®, by being above 50 percent for the eighth month after a single month of contraction and a prior 30-month period of expansion, continues to indicate sustained growth for the sector. The composite index has indicated expansion for all but three of the previous 162 months,” stated Anthony Nieves, Chair of the ISM Services Business Survey Committee.
The Business Activity Index signed up 57.3%, a 0.2 pp boost compared to the reading of 57.1% in July. The Inventories Index broadened to 57.7%, up 7.3 pp from July’s figure of 50.4%.
The Employment Index signed up 54.7%, up 4 pp from the July figure of 50.7%. Comments from participants consist of: “Hiring is stable, with quality employees available.”
The New Orders Index signed up 57.5%, 2.5 pp greater than the July reading of 55%. The index broadened in August for the 8th successive month after contracting in December for the very first time given that May 2020. Comments from participants consist of: “Sales on a national level have been strong” and “Material availability has returned to pre-COVID-19 levels.”
The Supplier Deliveries Index signed up 48.5%, 0.4 pp greater than the 48.1% taped in July. A reading above 50% suggests slower shipments, while a reading listed below 50% suggests much faster shipments. The August reading suggests provider shipments are much faster. Comments from participants consist of: “Supply chains are operating consistently, though some categories of supply remain constrained” in healthcare & social support and “The supply chain challenges affect a portion of our buys, as they include products and components made outside of the U.S. and are subject to shipping delays and issues.”
Read the ISM release.