Thursday, February 3, 2011

ISM Non-Manufacturing Index up 2.3 Points to 59.4 – Highest Level Since 2005

In January, the Institute for Supply Management's Non-Manufacturing Index rose by 2.3 points to 59.4. The increase continued a five month improvement trend leaving the index at its highest level since well before the recession. Values over 50 indicate service sector business activity expansion. The continued advancement in the index in recent months has showed that the service sector has continued to pick up steam and is now growing at a brisk pace.

The details of the report show a solid advancement in business output over the month. This component rose 1.7 points to a strong 64.6. New orders were the largest driving factor of the top line index growth. The component rose 3.5 points to 64.9. This bodes well for future activity growth over the coming months. The employment component also improved, rising 1.9 points to 54.5.

>50 = expansionJanDecNovOctSepAug
Headline Index59.457.156.054.653.952.8
    Business Output64.662.959.458.554.455.8
    New Orders64.961.458.556.655.655.0
    Backlogged Orders50.548.551.552.048.050.5

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