Not too surprisingly, we have a weakening ISM Non Manufacturing figure - it fits in with the rest of the data.   The reading of 52.7 is down from last month's 53.3.  (Estimate was 53)  It is still expansionary as its over 50, and for the first time in a long time we see the non manufacturing reading higher than the manufacturing - probably because the service sector is slower to adjust to economic conditions.

On the negative front new orders fell, inventories rose, and employment fell.  On the positive side some pressure in prices subsided.

WHAT RESPONDENTS ARE SAYING...
  • Sales and customer traffic recovered slightly, pulling even with last year after trending lower for several months. Discretionary spending per customer has continued to decline in all areas of the operation. (Arts, Entertainment & Recreation)
  • Sales volumes are steady. Input costs are increasing. (Agriculture, Forestry, Fishing & Hunting)
  • Business outlook remains steady, but concerns about the second half of the year remain. (Professional, Scientific & Technical Services)
  • Municipal government has not bounced back at a similar pace to the private sector. (Public Administration)
  • New home construction is still very slow. Repair and remodel is the only bright spot. (Wholesale Trade)
  • Commodities cooling off and dropping a bit. (Retail Trade)
ISM NON-MANUFACTURING SURVEY RESULTS AT A GLANCE

COMPARISON OF ISM NON-MANUFACTURING AND ISM MANUFACTURING SURVEYS*

JULY 2011

 Non-ManufacturingManufacturing
IndexSeries

Index

Jul

Series

Index

Jun

Percent

Point

Change

DirectionRate

of

Change

Trend**

(Months)

Series

Index

Jul

Series

Index

Jun

Percent

Point

Change

NMI/PMI52.753.3-0.6GrowingSlower2050.955.3-4.4
Business Activity/Production56.153.4+2.7GrowingFaster2452.354.5-2.2
New Orders51.753.6-1.9GrowingSlower2449.251.6-2.4
Employment52.554.1-1.6GrowingSlower1153.559.9-6.4
Supplier Deliveries50.552.0-1.5SlowingSlower1650.456.3-5.9
Inventories56.553.5+3.0GrowingFaster649.354.1-4.8
Prices56.660.9-4.3IncreasingSlower2459.068.0-9.0
Backlog of Orders44.048.5-4.5ContractingFaster245.049.0-4.0
New Export Orders49.057.0-8.0ContractingFrom Growing154.053.5+0.5
Imports47.546.5+1.0ContractingSlower253.551.0+2.5
Inventory Sentiment59.558.5+1.0Too HighFaster170N/AN/AN/A
Customers' InventoriesN/AN/AN/AN/AN/AN/A44.047.0-3.0

* Non-