July US ISM Services Index 56.7 vs. 53.5 expected

  • ISM Services Index July 2022

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Wednesday, 03/08/2022 | 13:56 GMT-0

03/08/2022 | 13:56 GMT-0

This is a stark contrast to the S&P Global services survey, which tumbled in July.

Details:

  • Business activity 59.9 vs. 54.0 expected (before 56.1)
  • Prices paid 72.3 vs 80.1 last month
  • Employment 49.1 vs 47.4 last month
  • New orders 59.9 vs. 55.6 last month
  • Supplier deliveries 57.8 vs 61.9 last month
  • Inventories 45.0 vs 47.5 last month
  • Order book 58.3 vs 60.5 last month
  • Exports 59.5 vs 57.5 last month
  • Imports 48.0 vs 46.3 last month

Comments in the report:

  • “Restaurant sales have weakened in recent weeks (due to) post-holiday and seasonal factors, but we are also listening due to consumer pressures, particularly fuel and food prices. Staffing remains a challenge in some markets. Many of our locations in (Los Angeles County) received word that there may be a return to (indoor) mask mandates.” [Accommodation & Food Services]
  • “Interest rates have had a significant impact on the home construction market. Cancellation rates have increased as homebuyers can no longer afford the monthly payment. Traffic to our communities has decreased. Inflation
  • “Strengthening of the market in general and signs of improvement. Rising prices put pressure on fixed budgets. It has gone from reducing costs to ensuring continuity of supply. Higher education is growing, with an increase in applicants.” [Educational Services]
  • “Business continues to remain below pre-pandemic levels. The census (of patients) and the visits have increased, but they seem to have stagnated in the last period of six months”. [Health Care & Social Assistance]
  • “You can feel the economy weakening. Customers are making the appropriate moves in anticipation of a recession.” [Management of Companies & Support Services]
  • “Hiring demand remains strong in most industry sectors. Tech has had a slowdown in hiring and firings. It remains a market for candidates, as the number of job openings at all skill levels and positions continues to be much higher than the number of candidates for those roles.” [Professional, Scientific & Technical Services]
  • “Increasing costs across the board seems to be the big focus now. Fuel and food is the most common approach, but it is widespread, and there is pressure from a labor market shortage of skilled workers to increase wages and other benefits.” [Public Administration]
  • “(We are) in inventory reduction mode, trying to match inventory levels with current lower sales trends.” [Retail Trade]
  • “Holding steady, but there are definitely some headwinds coming on the economic front. However, the supply chain problems seem to be easing, although not very well yet.” [Utilities]
  • “Foodservice is holding strong. Retail is weakening as the mass is too concerned with inventory and consumer spending.” [Wholesale Trade]

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