ISM: Non-Manufacturing Sector Grew at a Slower Rate in December

The ISM Non-Manufacturing Index registered 55.9 points in December, 1.5 percentage points below November’s figure. This was the 96th consecutive month of expansion as a reading above 50 indicates growth. Fourteen non-manufacturing industries reported growth in December, while three reported contraction. This was the second consecutive month of a slowed growth rate.

Growth in the Business Activity Index decreased 4.1 points to 57.3, the 101st consecutive month of growth. Ten industries reported increased business activity, and seven reported decreased activity.

Non-manufacturing employment grew for the 46th consecutive month. The index increased 1.0 point to 56.3. Twelve industries reported increased employment, while three reported decreased employment.

The New Orders Index fell 4.4 points to 54.3. Nine industries reported increased business activity, and seven industries reported decreased activity.

Supplier deliveries slowed for the 24th consecutive month, as the index registered 55.5 points (readings above 50 for this index indicate slower deliveries). Eight industries reported slower deliveries, while four reported faster deliveries.

Read the ISM release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.
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