U.S. Services Sector Activity Accelerates in July to New All-Time High -- ISM
By Xavier Fontdegloria
Activity in the U.S. services sector accelerated in July from
the previous month, hitting a new record high, amid an increase in
demand and widespread supply-related problems.
The ISM Services Report on Business PMI increased to 64.1 in
July from 60.1 in June, data from a survey compiled by the
Institute for Supply Management showed Wednesday.
Economists polled by The Wall Street Journal forecast the PMI to
come in at 60.5.
"The rate of expansion in the services sector recorded another
all-time high," said Anthony Nieves, chair of the ISM Services
Business Survey Committee. The previous record was reached in May,
when the PMI came in at 64.0.
The reopening of previously limited activity in hospitality,
leisure and traveling is fueling a boom in the services sector this
summer. However, many firms struggle with both input and labor
shortages that constrain potential growth that showed no signs of
abating in July.
The ISM services business activity index climbed to 67.0 in July
from 60.4 in June, while the new orders index rose to 63.7 from
62.1, signaling strong demand.
The employment index swung to expansion territory, reaching 53.8
from 49.3 the previous month. Despite the improvement of the
indicator, the constrained labor pool continues to be an issue for
companies, Mr. Nieves said.
Supply-chain disruption continued to be widespread. The supplier
deliveries index edged up to 72.0 in July from 68.5 the previous
month. The prices index climbed to 82.3 from 79.5, the data
"Materials shortages, inflation and logistics continue to
negatively impact the continuity of supply," Mr. Nieves said.
Write to Xavier Fontdegloria at email@example.com
(END) Dow Jones Newswires
August 04, 2021 10:33 ET (14:33 GMT)
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