Thursday, November 3, 2011

ISM Nonmanufacturing Index Barely Moved in October

The ISM nonmanufacturing index barely moved during October, falling to 52.9 from 53.0. The index remains above its neutral level of 50, indicating industry expansion. The details were mixed, with five of the nine measures declining.

New orders fell to 52.4 from 56.5, a decrease which more than reversed gains in September.

Inventories fell to 45.5, below the growth threshold, a notable positive for future growth. This is the third consecutive monthly decline in the inventory index and the lowest level since February 2010.

The employment index rebounded, rising to 53.3 from 48.7, but remains consistent with a weak labor market.

The report indicates the ISM index is consistent with an economy operating below potential but with no sign of recession.

Read full report.

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