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- U.S. non-manufacturing sector’s growth accelerates in October - ISM
U.S. non-manufacturing sector’s growth accelerates in October - ISM
The Institute
for Supply Management (ISM) reported on Tuesday its non-manufacturing index
(NMI) came in at 54.7 in October, which was 2.1 percentage points above the September
reading of 52.6 percent. This represents continued growth in the
non-manufacturing sector, at a faster rate.
Economists
forecast the index to increase to 53.4 last month. A reading above 50 signals
expansion, while a reading below 50 indicates contraction.
Of the 18
manufacturing industries, 13 reported growth last month, the ISM said, adding
that the respondents continued to be concerned about tariffs, labor resources
and the geopolitical climate.
According to
the report, the ISM’s non-manufacturing business activity measure rose to 57
percent, 1.8 percentage points higher than the September reading of 55.2
percent. That reflected growth for the 123rd consecutive month, at a slower
rate in August. The new orders gauge increased to 55.6 percent, up 1.9
percentage points from the reading of 53.7 percent in September. The Employment
indicator surged 3.3 percentage points in October to 53.7 percent from the September
reading of 50.4 percent. Meanwhile, the Prices Index declined 3.4 percentage
points from the September reading of 60 percent to 56.6 percent, indicating
that prices increased in October for the 29th consecutive month.
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