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Home Economy

ISM: Non-Manufacturing Index Fell

October 5, 2015
Reading Time: 1 min read

The Non-Manufacturing ISM Report on Business Index fell to 56.9 in September, down 2.1 points from August, but still positive, as readings above 50 indicate growth in the sector. Thirteen non-manufacturing industries reported growth in August, while four – Mining; Arts, Entertainment & Recreation; Retail Trade and Other Services – reported contractions.

The Business Activity Index registered 60.2, down 3.7 points from August’s reading. Respondents noted that the business climate has been improving, and firms are making more marketing efforts and rolling out capital improvement projects.

Non-manufacturing employment continued to grow, increasing 2.3 points to 58.3 percent. Employment has been growing for 19 consecutive months. Respondents noted increasing staffing for new programs and expanded business offerings. Ten industries reported growth in employment, while five industries – Mining; Arts, Entertainment & Recreation; Real Estate; Rental & Leasing; Public Administration and Retail Trade – reported a reduction in employment.

The New Orders index fell 6.7 points on the month to 56.7, but still grew overall for the 74th consecutive month. Respondents indicated that business is expanding as new, very large projects begin.

Supplier deliveries slowed as the index registered 52.5 points, consistent with the previous month. Readings above 50 indicate slower deliveries. Thirteen industries reported slower or no change to supplier deliveries while five industries – Mining; Utilities; Information; Finance & Insurance and Retail Trade – reported faster deliveries.

Read the ISM report.

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