July's Purchasing Managers Surveys Are Mixed

The stock and bond markets didn't respond much to the national survey of non-manufacturing purchasing managers this morning, even though it was on the weak side (chart). The overall NM-PMI, which the Institute for Supply Management (ISM) compiles, edged down to 50.1, just above the expansion/contraction line at 50.0. The production component was solid at 52.6. But the employment component fell to 46.4. On the other hand, the S&P Global flash US Services PMI Business Activity Index jumped from 52.9 in June to 55.2 in July.

During July, the ISM and S&P Global surveys of manufacturing were both weak, with readings of 48.0 and 49.5, respectively (chart). On the other hand, the average of the general business indexes of the regional business surveys conducted by five of the 12 Fed district banks improved last month.