The ISM Non-Manufacturing Index registered 55.5 points in January, 0.6 percentage points lower than December’s figure. This was the 120th consecutive month of expansion as a reading above 50 indicates growth. Twelve of the eighteen non-manufacturing industries reported growth. Respondents are optimistic about the economy with China’s coronavirus and the tight labor market cited as concerns.
Growth in the Business Activity Index increased 3.9 percentage points to 60.9, the 126th consecutive month of growth. Twelve industries reported increased business activity, while four reported decreased activity. Comments from respondents include: “New prospects and existing proposals converted” and “North American projects moving forward; activity picking up.”
Non-manufacturing employment grew for the 71st consecutive month, but moved closer to contraction. The index decreased 1.7 points to 53.1. Six industries reported increased employment, while eight reported decreased employment.
The New Orders Index increased 0.9 points to 56.2. Ten industries reported increased business activity, while four reported decreased activity.
Supplier deliveries slowed yet again, as the index registered 51.7 points (readings above 50 for this index indicate slower deliveries). Nine industries reported slower deliveries, while two industries reported faster deliveries.
Read the ISM release