Initial Unemployment Claims ho-hummed their way to another in-range reading, this time 315,000 seasonally adjusted claims.
The Institute for Supply Management announced its June Non-Manufacturing Index:
Economic activity in the non-manufacturing sector grew in June for the 53rd consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®.
… The NMI® registered 56 percent in June, 0.3 percentage point lower than the May reading of 56.3 percent. This represents continued growth at a slightly slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index decreased to 57.5 percent, which is 4.6 percentage points lower than the May reading of 62.1 percent, reflecting growth for the 59th consecutive month at a slower rate. The New Orders Index registered 61.2 percent, 0.7 percentage point higher than the reading of 60.5 percent registered in May. The Employment Index increased 2 percentage points to 54.4 percent from the May reading of 52.4 percent and indicates growth for the fourth consecutive month and at a faster rate. The Prices Index decreased 0.2 percentage point from the May reading of 61.4 percent to 61.2 percent, indicating prices increased at a slightly slower rate in June when compared to May. According to the NMI®, 14 non-manufacturing industries reported growth in June.
Unlike what we saw with Manufacturing on Tuesday, all three GDP drivers were strongly positive: Business Activity, New Orders, AND Backlog of Orders (53.0, down from 54.0).
We’ll take it, but again, this is a survey of sentiment and not a hard-number indicator, and it seems to be getting more instead of less divorced from reality.