Economy: ISM Non-Manufacturing Index (NMI®) for July 2019

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for July 2019:

Predicted: 55.5%
Actual: 53.7% (-1.4 points month-on-month change)

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Previous month: 55.1%

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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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From today' report:

"...Economic activity in the non-manufacturing sector grew in July for the 114th consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®..."

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Here's a sampling of comments made by survey participants:

“Business is still strong, considering the seasonality.”
(Accommodation + Food Services)

“Business volumes were flat compared to the previous month.”
(Health Care + Social Assistance)

“Tariffs continue to push costs higher, and customers are looking for more discounts due to mortgage-rate fluctuations.”
(Construction)

“Some uncertainty hinges on tariffs, but there have been no changes in market conditions.”
(Information)

“For our company, July is looking to be a record-setting month for sales. Customers have been converting quotes to sales quicker than in past months. The tariffs have increased prices for our industry, but our clients are not balking at the slight price increases that have been passed along. We feel that (the third quarter) will be strong.”
(Management of Companies + Support Services)

“It appears that the mining capital-expense environment is improving, with a good prospectus for the coming months. Our dependence on Chinese and Asian supply chains remains strong. NAFTA countries do not have the same capacity and speed.”
(Mining)

“Companies involved in the oil and gas industry remain cautious relative to hiring direct employees and contingent workers, as well as investing in new capital projects. Volatility in oil price and geopolitical concerns are driving this wait-and-see approach.”
(Professional, Scientific + Technical Services)

“Demand seems strong. There are still pressures for skilled labor. It is difficult to find fully qualified candidates. Suppliers are having trouble with demand.”
(Public Administration)

“As our corporate objectives drive us more and more into digitization, advanced analytics, and data management in general, we are finding it increasingly difficult to find, develop and retain professional with advanced skills in these disciplines.”
(Retail Trade)