ISM Non-Manufacturing Index Comes In Better Than Expected

The Institute for Supply Management reported its non-manufacturing index came in at 54.3%, which was better than expectations of 54.0%. More importantly new orders, a leading indicator surged to 56.7. You get the idea from what respondents said that the economy is growing just very slowly with lack of demand as the main problem.  From the ISM:
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 54.3 percent in October, 1.1 percentage points higher than the 53.2 percent registered in September, and indicating continued growth in the non-manufacturing sector at a slightly faster rate. The Non-Manufacturing Business Activity Index increased 5.6 percentage points to 58.4 percent, reflecting growth for the 11th consecutive month at a substantially faster rate than in September. The New Orders Index increased 1.8 percentage points to 56.7 percent, and the Employment Index increased 0.7 percentage point to 50.9 percent, indicating growth in employment for the second consecutive month and the fourth time in the last six months. The Prices Index increased 8.2 percentage points to 68.3 percent, indicating that prices increased significantly faster in October. According to the NMI, 11 non-manufacturing industries reported growth in October. Respondents' comments remain mixed about business conditions and vary by industry and company. The trend of the overall comments indicates that there are signs of economic stabilization."


•"Sales are still down compared to last year, but showing a slight increase." (Public Administration)
•"Economy still slow for our industry, with very small signs of recovery. Strong downward pricing pressures from customers affecting business." (Professional, Scientific & Technical Services)
•"Some positive growth in comp [comparable] sales over the past 2 to 3 months." (Accommodation & Food Services)
•"Business is picking up ever so slowly, but improving." (Transportation & Warehousing)
•"Generally stable-to-improving demand for our products." (Wholesale Trade)

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