Widget Image
Follow PPD Social Media
Follow Us:
People's Pundit Locals Community
Monday, August 15, 2022
HomeNewsEconomyISM Service Sector Index Misses Mark, With Subindexes Indicating Contraction

ISM Service Sector Index Misses Mark, With Subindexes Indicating Contraction

service-sector
service-sector

Service sector workers employed in a typical cubicle position. (Photo: Reuters)

A closely watched index of growth in the dominant U.S. services sector missed economists’ expectations for December, hitting a 6-month low across the board. Subindexes on employment, orders and business activity all declined.

The Institute for Supply Management said on Tuesday its services index fell to 56.2 for December, juxtaposed to 59.3 in November, a month that traditionally lags in performance compared to the height of the holiday season. The December figure fell short of expectations in a poll of economists conducted by Reuters, which forecast a 58 reading.

Worse still, two subindexes in the survey — prices and order backlogs — actually fell below 50, which indicates a contraction.

Readings above 50 suggest expansion, while below indicate contraction.

Indexes on both imports and exports saw significant declines, while the reading on new orders fell to 58.9, which is the lowest reading since April.

The service sector data is particularly concerning considering the terrible December manufacturing data, placing two significant sectors of the labor market either in or nearly in contraction territory.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial