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HomeNewsEconomyISM Report on Business: U.S. Service Sector Growth Slowed More than Expected in August

ISM Report on Business: U.S. Service Sector Growth Slowed More than Expected in August

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service-sector-employee

A service sector employee sits at his desk. (Photo: REUTERS)

The Institute for Supply Management (ISM) Report On Business, a gauge of service-sector growth in the U.S., declined to 56.9 in September from 59 in August. The reading was lower than the 57.5 Wall Street largely anticipated, and is the lowest reading since June.

The ISM Non-Manufacturing Report on Business comes after manufacturing data posted contraction regionally in the month of September, and the Labor Department’s jobs report severely disappointed. The U.S. economy added only 142,000 jobs, the number of Americans in the labor force fell to the lowest level since October 1977, wages fell and the lowest number of men ever were working or seeking work.

The 13 non-manufacturing industries reporting growth in September — listed in order — are: Educational Services; Construction; Finance & Insurance; Health Care & Social Assistance; Utilities; Wholesale Trade; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Accommodation & Food Services; Information; Public Administration; and Transportation & Warehousing. The four industries reporting contraction in September are: Mining; Arts, Entertainment & Recreation; Retail Trade; and Other Services.

ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE
COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS*
SEPTEMBER 2015
Non-Manufacturing Manufacturing
Index Series
Index
Sep
Series
Index
Aug
Percent
Point
Change
Direction Rate
of
Change
Trend**
(Months)
Series
Index
Sep
Series
Index
Aug
Percent
Point
Change
NMI®/PMI® 56.9 59.0 -2.1 Growing Slower 68 50.2 51.1 -0.9
Business Activity/Production 60.2 63.9 -3.7 Growing Slower 74 51.8 53.6 -1.8
New Orders 56.7 63.4 -6.7 Growing Slower 74 50.1 51.7 -1.6
Employment 58.3 56.0 +2.3 Growing Faster 19 50.5 51.2 -0.7
Supplier Deliveries 52.5 52.5 0.0 Slowing Same 4 50.2 50.7 -0.5
Inventories 51.0 54.5 -3.5 Growing Slower 6 48.5 48.5 0.0
Prices 48.4 50.8 -2.4 Decreasing From
Increasing
1 38.0 39.0 -1.0
Backlog of Orders 54.5 56.5 -2.0 Growing Slower 4 41.5 46.5 -5.0
New Export Orders 52.5 52.0 +0.5 Growing Faster 5 46.5 46.5 0.0
Imports 53.0 51.5 +1.5 Growing Faster 3 50.5 51.5 -1.0
Inventory Sentiment 65.0 69.0 -4.0 Too High Slower 220 N/A N/A N/A
Customers’ Inventories N/A N/A N/A N/A N/A N/A 54.5 53.0 +1.5
Overall Economy Growing Slower 74
Non-Manufacturing Sector Growing Slower 68

* Non-Manufacturing ISM® Report On Business® data is seasonally adjusted for Business Activity, New Orders, Prices and Employment Indexes. Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries.

** Number of months moving in current direction.

Written by

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.

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