ISM: Services Sector Activity Increases in January
The Institute for Supply Management said its Non-Manufacturing Index registered 54% in January, 1 percentage point higher than the seasonally adjusted reading of 53% registered in December. Economic activity in the non-manufacturing sector grew in January for the 48th consecutive month.
An NMI 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 increased to 56.3%, which is 2 percentage points higher than the seasonally adjusted reading of 54.3% reported in December, reflecting growth for the 54th consecutive month and at a faster rate.
The New Orders Index increased to 50.9%, 0.5 percentage point higher than the seasonally adjusted reading of 50.4 registered in December. The Employment Index increased 0.8 percentage point to 56.4% from the December seasonally adjusted reading of 55.6% and indicates growth in employment for the 25th consecutive month and at a faster rate. The Prices Index increased 2.4 percentage points from the December seasonally adjusted reading of 54.7% to 57.1%, indicating prices increased at a faster rate in January when compared to December.
According to the NMI, eleven non-manufacturing industries reported growth in January. The majority of respondents’ comments reflect an improvement in business conditions. Some of the respondents indicate that weather conditions have impacted their business. There remains a bit of uncertainty about the overall economy for some of the survey respondents; however, the majority feel positive about continued economic growth.
The eleven non-manufacturing industries reporting growth in January — listed in order — are: Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Other Services; Public Administration; Utilities; Professional, Scientific & Technical Services; Information; Wholesale Trade; Real Estate, Rental & Leasing; Retail Trade; and Finance & Insurance.
The seven industries reporting contraction in January — listed in order — are: Mining; Arts, Entertainment & Recreation; Health Care & Social Assistance; Transportation & Warehousing; Educational Services; Accommodation & Food Services; and Construction.
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