The July ISM Services index was at 58.1%, up from 57.1% in June. The employment index decreased to 42.1%, from 43.1%. Note: Above 50 indicates expansion, below 50 contraction.
From the Institute for Supply Management: July 2020 Services ISM Report On Business®
July 2020 Services ISM® Report On Business®; Business Activity Index at 67.2%; New Orders Index at 67.7%; Employment Index at 42.1%; Supplier Deliveries Index at 55.2%
Economic activity in the Services sector (formally non-manufacturing sector) grew in July for the second month in a row, say the nation’s purchasing and supply executives in the latest Services ISM® Report On Business®.
The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: “The Services PMI™ registered 58.1 percent, 1 percentage point higher than the June reading of 57.1 percent. This reading represents growth in the services sector for the second straight month after contraction in April and May, preceded by a 122-month period of expansion.
“The Supplier Deliveries Index registered 55.2 percent, down 2.3 percentage points from June’s reading of 57.5 percent. Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases. The higher readings for supplier deliveries in the three months prior to June were primarily a product of supply problems related to the coronavirus (COVID-19) pandemic. Supplier deliveries are now more closely correlating to the current supply and demand.
emphasis added
Click on graph for larger image.
This graph shows the ISM services index (started in January 2008) and the ISM services employment diffusion index.
The employment index showed ongoing weakness.