The Non-Manufacturing ISM Report on Business Index rose to 59.1 in October, up 2.2 points from September’s reading. Readings above 50 indicate growth in the sector. Fourteen non-manufacturing industries reported growth in October, while only the mining industry reported contraction.
The Business Activity Index increased 2.8 points to 63.0, marking the 75th consecutive month of growth in business activity. Respondents noted that business activity had generally increased over the last month and that store traffic had been heavy.
Non-manufacturing employment continued to grow, with the index increasing 0.9 points to 59.2, marking the 20th consecutive month of growth in non-manufacturing employment. Respondents noted that they were consistently adding full time employees, and that hiring had increased due to gains in revenue. Eleven industries reported growth in employment, up from 10 last month. Four industries – utilities; accommodation and food services; information; and mining reported shedding jobs.
The New Orders Index increased 5.3 points to 62.0, growing for the 75th consecutive month. Respondents reported adding new customers during the month, as well as increasing customer demand due to expanding products and services.
Supplier deliveries continued to slow as the index registered 52.0 percent, down slightly from September. Readings above 50 indicate slower deliveries. Nine industries, including retail trade and utilities reported slower deliveries, while five industries reported faster deliveries.
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