Highlights
Peak growth may have already come and gone, a worry of the global markets and indicated by the ISM's June report on non-manufacturing. The headline composite index slipped back 1.6 points to 53.8 for its lowest reading since February. Nearly all details indicate a slower rate of growth in June than in May. New orders fell nearly three points to 54.4 for its lowest reading of the year and joining the ISM's manufacturing index for new orders which, in data released last week, is also at its lowest of the year.
Business activity, at 58.1, is at its lowest level since February. Employment edged back to 49.7 ending its one-month visit over breakeven 50. Backlogs slowed slightly, export orders contracted, imports contracted, inventory gains slowed, and even prices slowed.
Today's report is not good news for the stock market which may continue to discount economic slowing for the months ahead. Today's report will also increase talk that new rounds of government stimulus may be in order.
Definition
The non-manufacturing ISM surveys nearly 400 firms from 60 sectors across the United States, including agriculture, mining, construction, transportation, communications, wholesale trade and retail trade.
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The ISM non-manufacturing survey does not compile a composite index like its manufacturing cousin. The business activity index, which is actually akin to the production index in the manufacturing survey, is widely followed as the key figure from this survey. |