Friday, June 4, 2010

ISM Non-Manufacturing Index Steady at 55.4

In May, the ISM Non-manufacturing Index was unchanged, remaining at 55.4. This was the third consecutive month where the index has been at this level and the fifth consecutive month where it has been over the expansionary threshold of 50. Service sector activity has therefore been growing at a steady pace in recent months.

The business output component moved upwards slightly by 0.8 point to 61.1. However, the new orders component fell back 1.1 points to 57.1. Of note is that the employment component rose above the expansionary threshold for the first time this cycle, hitting 50.4. This indicates that service sector firms are adding slightly to their payrolls on net.

10.06.03 (Source: Institute for Supply Management)

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