ISM: Non-Manufacturing Sector Growth Slows Slightly in January

The ISM Non-Manufacturing Index registered 56.7 points in January, 1.3 percentage points down from December’s figure. This was the 108th consecutive month of expansion as a reading above 50 indicates growth. Eleven non-manufacturing industries reported growth, while seven reported a contraction. Respondents are concerned about the impacts of the government shutdown but remain mostly optimistic about overall business conditions.

Growth in the Business Activity Index decreased 1.5 points to 59.7, the 114th consecutive month of growth. Nine industries reported increased business activity, while eight reported decreased activity. Comments from respondents include: “Holiday volume is over” and “Flu season.”

Non-manufacturing employment grew for the 59th consecutive month. The index decreased 1.2 points to 57.8. Ten industries reported increased employment, while four reported decreased employment.

The New Orders Index decreased 5.0 points to 57.7. Ten industries reported increased business activity, while five reported decreased activity.

Supplier deliveries slowed for the 37th consecutive month, as the index registered 51.5 points (readings above 50 for this index indicate slower deliveries). Seven industries reported slower deliveries, while four industries reported faster deliveries. Comments from respondents include: “Government shutdown” and “Some capacity challenges.”

Read the ISM release.