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HomeNewsEconomyISM: U.S. Service Sector Growth Slowed More than Views in December

ISM: U.S. Service Sector Growth Slowed More than Views in December

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service-sector-employee

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

The Non-Manufacturing ISM Report On Business showed service sector growth fell to 55.3 in December from 55.9, far below expectations for a 56 gain. Institute for Supply Management’s gauge of service sector growth is based on data compiled from monthly surveys sent to more than 375 purchasing executives working in the non-manufacturing industries across the country.

Readings above 50 indicate expansion, while those below point to contraction.

“According to the NMI, 11 non-manufacturing industries reported growth in December. Faster deliveries in December contributed to the overall slight slowing in the rate of growth according to the NMI composite index,” said Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee. “All of the other component indexes increased in the month of December. The majority of respondents’ comments remain positive about business conditions and the overall economy.”

The 11 non-manufacturing industries reporting growth in December — listed in order — are: Accommodation & Food Services; Management of Companies & Support Services; Health Care & Social Assistance; Information; Retail Trade; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Finance & Insurance; Construction; Professional, Scientific & Technical Services; and Utilities. The five industries reporting contraction in December are: Other Services; Educational Services; Wholesale Trade; Public Administration; and Transportation & Warehousing.

ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE
COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS*
DECEMBER 2015
Non-Manufacturing Manufacturing
Index Series
Index
Dec
Series
Index
Nov
Percent
Point
Change
Direction Rate
of
Change
Trend**
(Months)
Series
Index
Dec
Series
Index
Nov
Percent
Point
Change
NMI®/PMI® 55.3 55.9 -0.6 Growing Slower 71 48.2 48.6 -0.4
Business Activity/Production 58.7 58.2 +0.5 Growing Faster 77 49.8 49.2 +0.6
New Orders 58.2 57.5 +0.7 Growing Faster 77 49.2 48.9 +0.3
Employment 55.7 55.0 +0.7 Growing Faster 22 48.1 51.3 -3.2
Supplier Deliveries 48.5 53.0 -4.5 Faster From Slower 1 50.3 50.6 -0.3
Inventories 53.0 54.5 -1.5 Growing Slower 9 43.5 43.0 +0.5
Prices 49.7 50.3 -0.6 Decreasing From Increasing 1 33.5 35.5 -2.0
Backlog of Orders 50.0 51.5 -1.5 Unchanged From Growing 1 41.0 43.0 -2.0
New Export Orders 53.5 49.5 +4.0 Growing From Contracting 1 51.0 47.5 +3.5
Imports 49.0 51.0 -2.0 Contracting From Growing 1 45.5 49.0 -3.5
Inventory Sentiment 64.5 63.5 +1.0 Too High Faster 223 N/A N/A N/A
Customers’ Inventories N/A N/A N/A N/A N/A N/A 51.5 50.5 +1.0
Overall Economy Growing Slower 77
Non-Manufacturing Sector Growing Slower 71

* 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
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.

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