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

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

Predicted: 55.5%
Actual: 56.4% (+2.7 points month-on-month change)

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Previous month: 53.7%

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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 August for the 115th 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:

“Tariffs are affecting the cost of goods on all items imported from China. We’ve experienced a 10-percent increase on Chinese ingredients which kicked in on August 1.”
(Accommodation + Food Services)

“Generally good. Volumes are near expectations; however, commodity volatility is creating some challenges.”
(Agriculture, Forestry, Fishing + Hunting)

“Lower mortgage rates have not had a great effect on new residential construction sales. Tariffs continue to apply upward cost pressures to current supply chains.”
(Construction)

“Trading volumes slowed, despite an extra day in the month for financial market activity. The competitive landscape for financial services continues to be challenging, with new lower cost offerings from competitors and new startups. At the end of the month, the federal funds rate was lowered to 2.25 percent, which affects company revenues.”
(Finance + Insurance)

“The advertising specialties industry continues to remain robust, despite the escalation of tariffs on apparel and other related promotional products. Many suppliers bought deep into inventory to avoid price increases; however, pricing effects from the tariffs are trickling into the supply chain. Clients are still converting quotes into orders, and we are still on track for a record sales year.”
(Management of Companies + Support Services)

“Summer doldrums appear to be over, and the fourth quarter will be solid, with higher-than-expected revenues.”
(Professional, Scientific + Technical Services)

“Construction markets remain busy. Projects that were delayed are trying to get back on track.”
(Real Estate, Rental + Leasing)

“As Q2 wraps up for many retailers, we begin focusing on holiday readiness. In turn, head count and requests for additional products and services will gradually increase.”
(Retail Trade)