The ISM Services Index grew in January for the eighth consecutive month. The index registered 58.7% in January; 1.0 percentage points higher than the December reading of 57.7%. This reading represents the eighth straight month of growth for the services sector, which has expanded for all but two of the last 132 months.
Fourteen non-manufacturing industries reported growth. Most respondents are “are more optimistic about business conditions and the economy.”
The Business Activity Index registered 59.9% in January, a decrease of 0.6 percentage point from the adjusted December reading of 60.5%. This represents growth for the eighth consecutive month.
Service sector employment grew in January after contracting the previous month and registered 55.2%, up 6.5 percentage points from the December reading of 48.7%.
The New Orders Index registered 61.8%, an increase of 3.2 percentage points from the December reading of 58.6%. This is the eighth consecutive month of growth in New Orders. Comments from respondents include: “We appear to be picking up, as our customers are starting to pull the trigger on new project spend” and “Higher order levels due to enhanced promotions and seasonal activity.”
Supplier deliveries remained slow, as the index read 57.8%, which is 5.0 percentage points lower than the 62.8% reported in December. A reading above 50% indicates slower deliveries.
Read the ISM release.