ISM: October Services Sector Activity Grows at Slower Rate
The Institute for Supply Management said its Non-Manufacturing Index registered 54.2% in October, 0.9 percentage point lower than the 55.1% registered in September, indicating continued growth at a slightly slower rate. Economic activity in the non-manufacturing sector grew in October for the 34th consecutive month.
A reading above 50% indicates the non-manufacturing sector economy is generally expanding; below 50% indicates the non-manufacturing sector is generally contracting.
The Non-Manufacturing Business Activity Index registered 55.4%, which is 4.5 percentage points lower than the 59.9% reported in September, reflecting growth for the 39th consecutive month. The New Orders Index decreased by 2.9 percentage points to 54.8%. The Employment Index increased by 3.8 percentage points to 54.9%, indicating growth in employment for the third consecutive month. The Prices Index decreased 2.5 percentage points to 65.6%, indicating prices increased at a slower rate in October when compared to September.
According to the NMI, 13 non-manufacturing industries reported growth in October. The majority of the respondents’ comments reflect a positive but guarded outlook on business conditions and the economy.”
The 13 non-manufacturing industries reporting growth in October – listed in order – are: Agriculture, Forestry, Fishing & Hunting; Construction; Other Services; Management of Companies & Support Services; Finance & Insurance; Professional, Scientific & Technical Services; Accommodation & Food Services; Transportation & Warehousing; Real Estate, Rental & Leasing; Health Care & Social Assistance; Information; Educational Services; and Retail Trade.
The five industries reporting contraction in October are: Mining; Arts, Entertainment & Recreation; Wholesale Trade; Utilities; and Public Administration.
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