ISM service retreats in August

• August ISM Non-Manufacturing Index: 61.7 vs 62.0 consensus and 64.1 prior.
• Business Activity Index at 60.1% vs. 67.0%; New Orders Index at 63.2% vs. 63.7%; Employment Index at 53.7% 53.8%; Supplier Deliveries Index at 69.6% vs. 72%.
• "According to the Services PMI, 17 services industries reported growth. The composite index indicated growth for the 15th consecutive month after a two-month contraction in April and May 2020. There was a pullback in the rate of expansion in the month of August; however, growth remains strong for the services sector. The tight labor market, materials shortages, inflation and logistics issues continue to cause capacity constraints," says Nieves.