Despite 2 straight months of weakness in Services PMI, ISM's non-manufacturing index (adjusted for whatever meme is required) exploded to 59.6, another huge beat, and its highest since August 2005. The Business Activity index is highest since 2004, employment highest since Feb 2006, but new orders (domestic and export) dropped.
From the report:
The report was issued today by Anthony Nieves, CPSM, C.P.M., CFPM, chair of the Institute for Supply Management® (ISM®) Non-Manufacturing Business Survey Committee. "The NMI® registered 59.6 percent in August, 0.9 percentage point higher than the July reading of 58.7 percent. This represents continued growth in the Non-Manufacturing sector. The August reading of 59.6 percent is the highest for the composite index since its inception in January 2008. The Non-Manufacturing Business Activity Index increased to 65 percent, which is 2.6 percentage points higher than the July reading of 62.4 percent, reflecting growth for the 61st consecutive month at a faster rate. This is the highest reading for the index since December of 2004 when the index also registered 65 percent. The New Orders Index registered 63.8 percent, 1.1 percentage points lower than the reading of 64.9 percent registered in July. The Employment Index increased 1.1 percentage points to 57.1 percent from the July reading of 56 percent and indicates growth for the sixth consecutive month. The Prices Index decreased 3.2 percentage points from the July reading of 60.9 percent to 57.7 percent, indicating prices increased at a slower rate in August when compared to July. According to the NMI®, 15 non-manufacturing industries reported growth in August. Respondents' comments vary by business and industry. The majority of the comments reflect continued optimism in regards to business conditions. Some respondents indicate that there may be some tapering off in the recent strong rate of growth in the non-manufacturing sector."
The breakdown by components:
And the always goalseeked respondents:
- "General business conditions have improved." (Information)
- "Local business, and thus lending activity, is picking up." (Finance & Insurance)
- "Still incurring significant global challenges on pharmaceutical solution supply shortages." (Health Care & Social Assistance)
- "Pricing on most food related items continue to go up monthly." (Accommodation & Food Services)
- "Business is holding steady with orders increasing slightly. The rest of 2014 should show some slight growth. International orders have been slow to match U.S.
- growth but appear to be increasing slightly as well." (Professional, Scientific & Technical Services)
- "The local economy continues to get stronger." (Public Administration)
- "Year-over-year same store sales up approximately 4 percent resulting in continued store remodeling, new construction and upgrades." (Retail Trade)
- "New orders, project business and backlog remain robust. Internal investment in capital remains positive." (Wholesale Trade)


