The ISM Non-Manufacturing Index registered 54.8 points in October, down 2.3 points from the previous month. Despite the decline, September marked the 81st consecutive month of growth as indicated by readings over 50 points. Thirteen non-manufacturing industries reported growth in October, while five reported contraction.
Growth in the Business Activity Index slipped 2.6 points to 57.7. Eleven industries reported increased business activity and four reported decreased activity. Respondents noted an increase in consumer spending, and that projects which were on hold have been resumed.
Non-manufacturing employment grew for the fifth consecutive month, albeit at a slowing pace; the index slipped 4.1 points to 53.1. Some respondents noted an increase in sales positions to meet market demand, along with higher turnover and an increase in open positions.
The New Orders Index fell 2.3 points to 57.7, indicating strong growth (but at a slower pace). Some respondents commented that they had been awarded new contracts, while others noted that they had experienced “organic growth.”
Supplier deliveries slowed for the 10th consecutive month, as the index registered 50.5 points (readings above 50 for this index indicate slower deliveries). Six industries reported slower deliveries, while 5 reported faster deliveries.
Read the ISM release.
