ISM non-manufacturing report indicates sector's growth slowed

The Institute for Supply Management recently unveiled its latest report on the U.S. non-manufacturing sector, with data indicating that growth slowed from the prior month's levels.

The ISM June report states that the non-manufacturing sector registered 53.3 percent in the month, which is 1.3 percentage points lower than in May. Still, that level illustrates the non-manufacturing sector continues to expand, although perhaps at a slower pace than over the past year.

Moreover, the ISM's non-manufacturing business activity index hit 53.4 percent in June, which was down 0.2 percentage point from May's reading of 53.6 percent. The new orders index, which is a gauge of business demand during the month, fell 3.2 percentage points to 53.6 percent. The employment index, however, increased 0.1 percentage point to 54.1 percent, showing the hiring within the sector remains robust.

ISM non-manufacturing business survey committee chair Anthony Nieves affirmed that the latest report from the ISM illustrates how volatile commodity prices continue to affect U.S. businesses.

According to the NMI, 15 non-manufacturing industries reported growth in June. Respondents' comments are mixed about the business climate and vary by industry and company. The most prominent concern remains about the volatility of prices," he said.