On Friday, the Institute for Supply Management released its August Non-Manufacturing Report on Business. Here's the skinny:
Purchasing and supply executives report that business activity continued to increase in August in the non-manufacturing sector, but the rate of increase was slower than in July. The Business Activity Index for August is 58.2 percent, down 6.6 percentage points from July's 64.8 percent. August's index indicates continued growth across most non-manufacturing industries. In August, 10 industry groups reported growth, six indicated contraction, and one reported business unchanged from July. Increased business activity in August was reported by 32 percent of members, compared to 38 percent in July. Reduced activity was reported by 18 percent of members, compared to 10 percent in July. In August, the remaining 50 percent of members indicated no change in business activity, compared to 52 percent that reported no change in July.
In other words, the report confirms that the general picture drawn by the better know manufacturing report. Specifically. it appears that the economy is continuing to expand smartly, though the pace has decelerated.