US ISM Non-Manufacturing Index Rises to 55.4 in August, Employment Component Continues to Contract
Macro
The ISM non-manufacturing index for August, released by the Institute for Supply Management, rose to 55.4, unexpectedly up from 54.1 in July, reaching its highest level since February. Twelve service industries reported accelerated growth in August, while five industries reported contraction. New orders surged to 60.9, the highest since February 2023, boosting the index, and business activity also hit 61.7, the highest since 2022. Meanwhile, the employment component fell to 47.8, remaining below 50 for the second consecutive month, indicating continued contraction. Prices paid reached 72.6, a four-year high, raising concerns about price pressures.
