ISM: Service sector expands in September

The ISM Services Index registered 56.7% in September; 0.2 percentage points lower than the August reading of 56.9%. This reading represents the 28th straight month of growth for the services sector.

15 industries reported growth in September. Survey respondents noted “September is one of our slowest months of the year. We are gearing up to have a very busy fourth quarter and are seeing some signs of relief in our supply chain.”

The Business Activity Index registered 59.1% in September, a decrease of 1.8 percentage points from the August reading of 60.9%.

Service sector employment grew in September, and registered 53.0%, 2.8 percentage points higher than August reading of 50.2%. Ten industries reported growth in employment for the month.

The New Orders Index was 60.6%, down 1.2 percentage points from the prior month’s reading of 61.8%. Comments from respondents include: “New customers added as our business continues to grow” and “New programs starting up.”

The supplier deliveries index registered 53.9% in September, down 0.6 percentage points from the prior month. A reading above 50% indicates slower deliveries.

Read the ISM release.