ISM: Services Sector Growth Slows in November
The Institute for Supply Management said its Non-Manufacturing Index (NMI) registered 53.9% in November, 1.5 percentage points lower than October’s reading of 55.4%, indicating continued growth at a slower rate in the non-manufacturing sector. Economic activity in the non-manufacturing sector grew in November for the 47th 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 decreased to 55.5%, which is 4.2 percentage points lower than the 59.7% reported in October, reflecting growth for the 52nd consecutive month, but at a slower rate. The New Orders Index decreased slightly by 0.4 percentage point to 56.4%, and the Employment Index decreased 3.7 percentage points to 52.5%, indicating growth in employment for the 16th consecutive month, but at a slower rate. The Prices Index decreased 3.9 percentage points to 52.2%, indicating prices increased at a slower rate in November when compared to October.
According to the NMI, 11 non-manufacturing industries reported growth in November. Respondents’ comments for the most part indicate the non-manufacturing sector is maintaining a steady course of incremental growth and a positive outlook for the upcoming months.
The 11 non-manufacturing industries reporting growth in November — listed in order — are: Transportation & Warehousing; Retail Trade; Management of Companies & Support Services; Other Services; Information; Agriculture, Forestry, Fishing & Hunting; Wholesale Trade; Finance & Insurance; Public Administration; Educational Services; and Professional, Scientific & Technical Services.
The six industries reporting contraction in November — listed in order — are: Mining; Accommodation & Food Services; Utilities; Health Care & Social Assistance; Arts, Entertainment & Recreation; and Construction.
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