The ISM Services Index grew in September for the fourth consecutive month. The index registered 57.8% in September; 0.9 percentage points higher than the August reading.
Sixteen non-manufacturing industries reported growth. Many respondents are “mostly optimistic about business conditions and the economy, which correlates directly to those businesses that are operating. There continues to be capacity and logistics issues, as business volumes have increased.”
The Business Activity Index registered 63.0% in September, a 0.6 percentage point increase from the August reading of 62.4%. This represents growth for the fourth consecutive month.
Service sector employment grew for the first month after sixth months of contraction and registered 51.8%, up 3.9 percentage points from the August reading of 47.9%. Nine industries reported increased employment.
The New Orders Index registered 61.5%, an increase of 4.7 percentage points from the August reading of 56.8%. This is the fourth consecutive month of growth in New Orders. Comments from respondents include: “Business activity resumes as retail activity picks up” and “Increase in demand as businesses reopen and more people are driving.”
Supplier deliveries improved, as the index 54.9%, which is 5.6 percentage points lower than the 60.5% reported in August. A reading above 50% indicates slower deliveries.
Read the ISM release.
