Economy: ISM Non-Manufacturing Index (NMI®) for May 2017

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for May 2017:

Predicted: 57.0%
Actual: 56.9%

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The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

Service categories include: Agriculture, Forestry, Fishing + Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation + Warehousing; Information; Finance + Insurance; Real Estate, Rental + Leasing; Professional, Scientific + Technical Services; Management of Companies + Support Services; Educational Services; Health Care + Social Assistance; Arts, Entertainment + Recreation; Accommodation + Food Services; Public Administration; and Other Services (services such as Equipment + Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning + Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).

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The previous month's NMI reading was 57.5%.

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Here's a sampling of comments from survey participants:

"Lumber tariff effects are beginning to show up."
(Construction)

"Business is progressing steadily. No real issues or adjustments to affect annual goals/efforts."
(Finance and Insurance)

"General feeling is caution. Too much uncertainty."
(Health Care and Social Assistance)

"Seeing an uptick in the overall activity within the oil and gas sector, which typically will cause a trickle-down effect on the majority of businesses."
(Mining)

"Typical transition month in terms of fresh produce and other food related categories. End of spring items and beginning of summer. Gapping of some items. Beef is increasing in price, especially grilling meat cuts. I anticipate this to increase to over $1 per pound on some items as we approach the 4th of July holiday."
(Accommodation and Food Services)

"Continuing to feel [the] effect of overheated commercial construction market — few bidders, higher prices. Scarce construction labor seems to be the driver."
(Public Administration)

"Business outlook continues to be steady and meeting original projects, but some ups and downs in successive months."
(Professional, Scientific and Technical Services)

"Overall, business conditions the past month were flat as compared with several months of growth. While levels haven’t decreased, it may be that overall conditions have reached a high watermark."
(Retail Trade)