ISM: Non-Manufacturing Sector Growth Slower in December

The ISM Non-Manufacturing Index registered 57.6 points in December, 3.1 percentage points below November’s figure. This was the 107th consecutive month of expansion, as a reading above 50 indicates growth. Sixteen non-manufacturing industries reported growth, while one reported a decrease. The majority of respondents remain positive about business conditions and the economy, but tariffs (even with the recent hold on increases by the United States and China), employment resource challenges, and capacity constraints remain concerns.

Growth in the Business Activity Index decreased 5.3 points to 59.9, the 113th consecutive month of growth. Eleven industries reported increased business activity, while four reported decreased activity.

Non-manufacturing employment grew for the 58th consecutive month. The index decreased 2.1 points to 56.3. Thirteen industries reported increased employment, while four reported decreased employment.

The New Orders Index increased 0.2 points to 62.7. Thirteen industries reported increased business activity, while only one reported decreased activity.

Supplier deliveries slowed for the 36th consecutive month, as the index registered 51.5 points (readings above 50 for this index indicate slower deliveries). Eight industries reported slower deliveries, while six industries reported faster deliveries.

Read the ISM release.

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About Author

Hugo Dante

Hugo Dante is a research associate in the Economic Policy and Research group at the ABA.