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Friday, October 7, 2022
HomeNewsEconomyU.S. Service Sector Growth Cools in January, Activity Falls to 2-Year Low

U.S. Service Sector Growth Cools in January, Activity Falls to 2-Year Low

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

The Institute for Supply Management’s Report on Business (NMI), a gauge of service-sector growth slowed to 53.5 last month from 55.8 in December. The NMI reading was well below expectations for a much smaller decline to 55.1 and was the lowest since February 2014. Readings above 50 indicate expansion, while those below point to contraction.

The 10 non-manufacturing industries reporting growth in January — listed in order — are: Finance & Insurance; Real Estate, Rental & Leasing; Utilities; Retail Trade; Information; Construction; Agriculture, Forestry, Fishing & Hunting; Health Care & Social Assistance; Management of Companies & Support Services; and Public Administration. The eight industries reporting contraction in January — listed in order — are: Mining; Educational Services; Wholesale Trade; Other Services; Arts, Entertainment & Recreation; Accommodation & Food Services; Transportation & Warehousing; and Professional, Scientific & Technical Services.

ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE
COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS*
JANUARY 2016
Non-Manufacturing Manufacturing
Index Series
Index
Jan
Series
Index
Dec
Percent
Point
Change
Direction Rate
of
Change
Trend**
(Months)
Series
Index
Jan
Series
Index
Dec
Percent
Point
Change
NMI®/PMI® 53.5 55.8 -2.3 Growing Slower 72 48.2 48.0 +0.2
Business Activity/Production 53.9 59.5 -5.6 Growing Slower 78 50.2 49.9 +0.3
New Orders 56.5 58.9 -2.4 Growing Slower 78 51.5 48.8 +2.7
Employment 52.1 56.3 -4.2 Growing Slower 23 45.9 48.0 -2.1
Supplier Deliveries 51.5 48.5 +3.0 Slowing From Faster 1 50.0 49.8 +0.2
Inventories 51.5 53.0 -1.5 Growing Slower 10 43.5 43.5 0.0
Prices 46.4 51.0 -4.6 Decreasing From Increasing 1 33.5 33.5 0.0
Backlog of Orders 52.0 50.0 +2.0 Growing From Unchanged 1 43.0 41.0 +2.0
New Export Orders 45.5 53.5 -8.0 Contracting From Growing 1 47.0 51.0 -4.0
Imports 46.0 49.0 -3.0 Contracting Faster 2 51.0 45.5 +5.5
Inventory Sentiment 61.5 64.5 -3.0 Too High Slower 224 N/A N/A N/A
Customers’ Inventories N/A N/A N/A N/A N/A N/A 51.5 51.5 0.0
Overall Economy Growing Slower 78
Non-Manufacturing Sector Growing Slower 72

* 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.
Indexes reflect newly released seasonal adjustment factors.

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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