Wednesday, February 3, 2016

ISM: Non-Manufacturing Sector Slowed in January

The ISM Non-Manufacturing Business Index fell to 53.5 points in January, 2.3 points below December’s seasonally adjusted rate. Despite the decline, January marked the 72nd consecutive month of growth, as indicated by readings over 50. Ten non-manufacturing industries reported growth in January, while eight reported contractions.

Growth in the Business Activity Index slowed 5.6 points from December’s seasonally adjusted reading to 53.9. Some respondents noted that regional weather conditions and instability in China were affecting spending activity. Nine of the eighteen industries reported an increase in business activity, while nine reported a decline.

Non-manufacturing employment grew for the 23rd consecutive month in January, but at a slower pace, as the index fell 4.2 points to 52.1. Four industries, including finance and insurance, retail trade, and healthcare and social assistance reported growth. Eight industries, including accommodation and food services, and arts entertainment and recreation contracted.

The New Orders Index registered 56.5, down 2.4 points from December. Respondents reported that business was “not growing, but still very strong” and that some orders had slowed.

Supplier deliveries slowed in January, as the index rose 3.0 points to 51.5 (readings above 50 for this index indicate slower deliveries). Eight industries reported slower deliveries, while five, including mining, educational services, and wholesale trade reported faster deliveries.

Read the ISM release.
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