ISM Services PMI Reading Surges In August

Economic activity in the services sector surged in August for the twenty seventh month in a row, with the Services PMI registering 56.9 percent according to the US purchasing and supply executives in the latest “Services ISM Report On Business”.

The report was issued on Tuesday by Anthony Nieves, Chair of the Institute for Supply Management (ISM) Services Business Survey Committee.

“In August, the Services PMI registered 56.9 percent, 0.2 percentage point higher than July’s reading of 56.7 percent. The Business Activity Index registered 60.9 percent, an increase of 1 percentage point compared to the reading of 59.9 percent in July. The New Orders Index figure of 61.8 percent is 1.9 percentage points higher than the July reading of 59.9 percent”, the report said.

The service sector is starting to see some cost pressures relief; the overall supply environment is healthy. Some pullback on projects by clients, but activity is still strong for companies.

Supply chain issues continue to significantly extend lead times, with a shortage of materials to build scientific equipment and machinery contributing to the issue.