Economic activity in the non-manufacturing sector grew in September for the ninth consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.
The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee; and senior vice president — supply management for Hilton Worldwide. "The NMI (Non-Manufacturing Index) registered 53.2 percent in September, 1.7 percentage points higher than the 51.5 percent registered in August, indicating continued growth in the non-manufacturing sector at a faster rate. The Non-Manufacturing Business Activity Index decreased 1.6 percentage points to 52.8 percent, reflecting growth for the 10th consecutive month, but at a slower rate than in August. The New Orders Index increased 2.5 percentage points to 54.9 percent, and the Employment Index increased 2 percentage points to 50.2 percent, indicating growth in employment for the third time in the last five months. The Prices Index decreased 0.2 percentage point to 60.1 percent, indicating that prices increased in September at a slightly slower rate. According to the NMI, 11 non-manufacturing industries reported growth in September. Respondents' comments continue to be mixed about business conditions, with a slight majority reflecting optimism."
WHAT RESPONDENTS ARE SAYING ...
•"General state of the business has not changed in the last three months. The market is still soft for new sales due to financing requirements." (Construction)
•"Business seems to be flat from last month." (Finance & Insurance)
•"Signs that the economy may be improving, but our sector is still flat or declining." (Professional, Scientific & Technical Services)
•"Business activity is generally stable — slightly better than last year." (Accommodation & Food Services)
Overall, this was a good number which shows expansion. Much better than ISM's PMI released a few days earlier which was weak. More importantly non-manufacuting new orders were up from August. One other positive was that the employment index increased by an ever so small amount.. From the Institute for Supply Management: