The U.S. services sector expanded at a faster pace in July as the non-manufacturing business activity composite index was 60.3 in the month, compared to 56.0 in June, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.
Economists polled by Thomson Reuters had expected a 56.2 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index climbed to 53.7 from 53.0.
The employment index grew to 59.6 from 52.7.
The business activity/production index gained to 64.9 from 61.5, the new orders index was at 63.8, up from 58.3; backlog of orders rose to 54.0 from 50.5; new export orders rose to 56.5 from 52.0; inventories gained to 57.0 from 55.0; inventory sentiment slipped to 63.5 from 65.0; the supplier deliveries index grew to 53.0 from 51.5; and imports increased to 50.5 from 48.0.
Members' general comments on business in the month included:
- "The psychological impact of Avian Influenza has dissipated; however, the impact on egg supplies is still being felt." (Agriculture, Forestry, Fishing & Hunting)
- "Fifteen percent annual growth expected." (Finance & Insurance)
- "Upsurge in business from last month continues. Prices mostly staying the same." (Professional, Scientific & Technical Services)
- "Business volume is increasing." (Public Administration)
- "Business remains strong. Outlook for the rest of the year is favorable." (Retail Trade)
- "Capital purchasing on infrastructure improvement [is] up to accommodate new business growth." (Transportation & Warehousing)
- "Maintaining manageable growth. Local capital projects and investment continue to provide new opportunities." (Wholesale Trade)
- "New business continues." (Utilities)
