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ISM: Services Sector Growth Rate Slows in September

October 07, 2013, 07:11 AM
Filed Under: Economy

Economic activity in the non-manufacturing sector grew in September for the 45th consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.

The report was issued by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee. "The NMI™ registered 54.4 percent in September, 4.2 percentage points lower than August's reading of 58.6 percent. This indicates continued growth at a slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index decreased to 55.1 percent, which is 7.1 percentage points lower than the 62.2 percent reported in August, reflecting growth for the 50th consecutive month but at a significantly slower rate. The New Orders Index decreased by 0.9 percentage point to 59.6 percent, and the Employment Index decreased 4.3 percentage points to 52.7 percent, indicating growth in employment for the 14th consecutive month. The Prices Index increased 3.8 percentage points to 57.2 percent, indicating prices increased at a faster rate in September when compared to August. According to the NMI™, 11 non-manufacturing industries reported growth in September. The majority of the respondents' comments continue to be positive; however, there is an increase in the degree of uncertainty regarding the future business climate and the direction of the economy."
Industry Performance
The 11 non-manufacturing industries reporting growth in September — listed in order — are:

  • Retail Trade
  • Management of Companies & Support Services
  • Transportation & Warehousing
  • Construction
  • Utilities
  • Information
  • Finance & Insurance
  • Other Services
  • Wholesale Trade
  • Professional, Scientific & Technical Services
  • Public Administration

The four industries reporting contraction in September are:

  • Arts, Entertainment & Recreation
  • Educational Services
  • Health Care & Social Assistance
  • Mining

To read the full September 2013 Non-Manufacturing ISM Report On Business, click here.

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