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Saturday, November 27, 2021
HomeNewsEconomyService Sector Expands More than Forecast in September

Service Sector Expands More than Forecast in September

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service-sector-hospital-nurse-reuters

Service sector employee, nurse at a hospital. (Photo: REUTERS)

The Non-Manufacturing (NMI) Report On Business, the Institute of Supply Management (ISM) gauge of service sector activity, increased to 57.1 in September. The reading, which marks an 11-month high, or the highest level since October 2015, followed a steep drop in August and topped the forecast of 53.0.

A reading above 50 indicates expansion in the service sector.

Increases in the index during September were broad-based, as business activity and the employment sub-indices both reached 11-month highs. The report was in line with the ADP National Employment Report released on Wednesday showing U.S. private employers added 154,000 jobs in September, slightly below economists’ expectations. The report continued to find the service, which accounts for more than two-thirds of U.S. economic activity, led the way industry-wise.

However, with wages stagnant or at best rising slowly, the lower-paying service sector is welcomed growth but not enough needed to move the needle. The more closely-watched monthly U.S. jobs report is scheduled for release on Friday.

The Commerce Department also reported earlier on Wednesday that the U.S. trade deficit rose more than expected in August as a sharp increase in imports easily offset higher exports. The trade gap widened 3% to $40.73 billion.

ISM® NON-MANUFACTURING SURVEY RESULTS AT A GLANCE
COMPARISON OF ISM® NON-MANUFACTURING AND ISM® MANUFACTURING SURVEYS*
SEPTEMBER 2016
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® 57.1 51.4 +5.7 Growing Faster 80 51.5 49.4 +2.1
Business Activity/Production 60.3 51.8 +8.5 Growing Faster 86 52.8 49.6 +3.2
New Orders 60.0 51.4 +8.6 Growing Faster 86 55.1 49.1 +6.0
Employment 57.2 50.7 +6.5 Growing Faster 4 49.7 48.3 +1.4
Supplier Deliveries 51.0 51.5 -0.5 Slowing Slower 9 50.3 50.9 -0.6
Inventories 51.5 48.0 +3.5 Growing From Contracting 1 49.5 49.0 +0.5
Prices 54.0 51.8 +2.2 Increasing Faster 6 53.0 53.0 0.0
Backlog of Orders 52.0 49.5 +2.5 Growing From Contracting 1 49.5 45.5 +4.0
New Export Orders 56.5 46.5 +10.0 Growing From Contracting 1 52.0 52.5 -0.5
Imports 51.0 50.5 +0.5 Growing Faster 8 49.0 47.0 +2.0
Inventory Sentiment 64.5 64.0 +0.5 Too High Faster 232 N/A N/A N/A
Customers’ Inventories N/A N/A N/A N/A N/A N/A 53.0 49.5 +3.5
Overall Economy Growing Faster 86
Non-Manufacturing Sector Growing Faster 80

* 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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