The June 2012 ISM Non-manufacturing report shows the overall index decreased, -1.6 percentage points, to 52.1%. The NMI is also referred to as the services index and the decline indicates slower growth for the service sector.
The ISM Non-manufacturing report for July 2011 shows the overall index increased to 53.3%, the same as June and up +0.6 points from July's 52.7%. This report is also referred to as the services index, or service sector index.
I couldn't resist the drama. This headline is a reaction to all of the misleading headlines of the past week. The stock market is having trouble with this piece of news:
U.S. service industries unexpectedly contracted at a faster pace in July as concern over rising unemployment gripped consumers.
The Institute for Supply Management’s index of non- manufacturing businesses, which make up almost 90 percent of the economy, fell to 46.4 from 47 in June, according to the Tempe, Arizona-based group. Fifty is the dividing line between expansion and contraction.
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