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The NMI - which is measured based on 10 indicators: business activity, new orders, backlog of orders, new export orders, inventory change, inventory sentiment, imports, prices, employment and supplier deliveries - came in at 47 percent for June, indicating that construction in the non-manufacturing sector is constricting for the ninth month in a row.
However, the growth in the accommodation and food services industry, as well as in real estate and entertainment industries, suggest that the cuts in discretionary spending reported by consumers this month may not be as drastic as expected, or have not yet impacted the industry.
In fact, one respondent in the arts and entertainment industry commented, "business has improved and holding steady," while another respondent in the accommodation and food services industry wrote, "occupancy levels continue to increase at a slow pace."
Though many small businesses in the manufacturing and non-manufacturing industries alike are reporting difficulties with their working capital, there are signs that the economy might not be as bad as expected - the slightly increasing index of pending home sales and the better-than-expected manufacturing activity numbers, the Associated Press reported, point to possible economic recovery.
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