Economy: ISM Non-Manufacturing Index (NMI®) for June 2020

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for June 2020:

==========

Predicted: 50.0%

Actual: 57.1% (+11.7 points month-on-month change)

==========

Previous month: 45.4%

==========

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).

==========

From today' report:

"...Economic activity in the non-manufacturing [services] sector grew in June after two consecutive months of contraction, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM^® Report On Business^®..."

============

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

“Businesses are starting to reopen and the economy seems to be on the road to recovery, but let’s not get too complacent, [as] COVID-19 is still a pandemic, [and] a vaccine has not been developed. Economics is the reason for the push for businesses to reopen. Utmost care and awareness still needs to be cautiously and religiously followed.”
(Accommodation + Food Services)

“Surprising recovery to sales volume over the past four weeks.”
(Agriculture, Forestry, Fishing + Hunting)

“Sales have picked up tremendously. Sporadic supply issues. Biggest concern for us is lumber shortages.”
(Construction)

“We are a public higher-education institution. We are expecting budget cuts for fiscal year 2021. Our biggest concern is COVID-19. The plan for a vast majority of higher education institutions is to have students on campus and blend of face-to-face and online classes. However, if students do not effectively social distance, then we could see a dramatic increase in COVID-19 and campuses forced to move to online classes. This will be a major financial blow to revenue for all universities (athletic events, vending, parking, housing, and the like).”
(Educational Services)

“We continue to all work from home globally. Strict restriction on travel and external events. Senior management focusing on a plan for returning to the office.”
(Finance + Insurance)

“COVID-19 has affected us, of course — obtaining PPE supplies has been our focus. Overall census has been very low. Operating rooms, rehab clinics and physician practices were closed or working fewer hours but have since opened back up.”
(Health Care + Social Assistance)

“Advertisers are starting to place more advertisements and the media business is turning around. Generally, we are at the end of the employee furloughs and layoffs. Our work efforts have been focused on navigating COVID-19. We are now shifting to value-add projects. We are cautiously optimistic, although as we get closer to the presidential election, we are on guard of unprecedented civil and social unrest.”
(Information)

“Activity level is holding steady, with the potential of a rebound in the near future.”
(Mining)

“We have seen an overall reduction in our business as a result of COVID-19, with the greatest reduction in the aviation and oil and gas industries. In contrast, the pharmaceutical industry has seen an increase in business during the same time frame.”
(Other Services)