Wednesday, February 4, 2015

Non-Manufacturing ISM Index Increased in January

The Non-Manufacturing ISM Report on Business Index was 56.7 in January, 0.2 percentage points above the previous month. Index readings above 50 indicate expansion in the non-manufacturing economy. January was the 60th consecutive month of economic growth. Eight industries reported growth in January, while eight industries— Mining; Arts, Entertainment & Recreation; Construction; Other Services; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Educational Services; and Transportation & Warehousing—contracted.

The Business Activity Index was 61.5, 2.9 percentage points faster than the previous month. Respondents attributed the growth to “mild weather and lower gas prices” and “new products introduction.”

The Employment Index was 51.6, 4.1 percentage points lower than the previous month. Survey respondents note that “general decline in revenue year-over-year has caused some cutbacks in our labor force.”

The New Orders Index was 59.5, 0.3 percentage points faster than December. Respondents reported the continued growth was driven by “new budgets” and “increased orders and/or prospects.”

The Supplier Deliveries Index was 54.0, 1.5 percentage points higher than the previous month, albeit at a slower growth rate than previously observed. No industry reported faster deliveries, eight reported no change, and 10 reported slower deliveries.

Prices paid decreased for the second time in 63 months, falling from 49.8 to 45.5. Ten industries reported a decline in prices and six reported an increase.

Read the ISM Release.

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