U.S. Service Sector Activity Stronger than Expected in September
Tempe, Arizona (PPD) — The Institute for Supply Management Services PMI (NMI) rose more than expected for September, beating forecasts at 57.8. The reading indicates economic activity in the services sector grew for the fourth month in a row.
The 0.9 gain exceeds the high end of the forecast range for the month. Forecasts ranged from a low of 55.0 to a high of 57.4. The consensus forecast was 56.3.
“According to the Services PMI, 16 services industries reported growth. The composite index indicated growth for the fourth consecutive month after contraction in April and May,” said Anthony Nieves, Chair of the ISM Services Business Survey Committee.
“Respondents’ comments remain mostly optimistic about business conditions and the economy, which correlates directly to those businesses that are operating. There continues to be capacity and logistics issues, as business volumes have increased.”
ISM Services PMI and Manufacturing PMI
|Services PMI™||Manufacturing PMI®|
|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|
|Business Activity/ Production||63.0||62.4||+0.6||Growing||Faster||4||61.0||63.3||-2.3|
|Backlog of Orders||50.1||56.6||-6.5||Growing||Slower||4||55.2||54.6||+0.6|
|New Export Orders||52.6||55.8||-3.2||Growing||Slower||2||54.3||53.3||+1.0|
|Inventory Sentiment||55.4||52.5||+2.9||Too High||Faster||2||N/A||N/A||N/A|
**Number of months moving in current direction.
The 16 services industries reporting growth in Services PMI for September — listed in order — are: Arts, Entertainment & Recreation; Utilities; Management of Companies & Support Services; Transportation & Warehousing; Health Care & Social Assistance; Wholesale Trade; Real Estate, Rental & Leasing; Accommodation & Food Services; Construction; Public Administration; Educational Services; Agriculture, Forestry, Fishing & Hunting; Finance & Insurance; Retail Trade; Information; and Other Services.
The only industry reporting a decrease in September is Professional, Scientific & Technical Services.
The Services PMI was previously known as the Institute for Supply Management Non-Manufacturing Index (NMI).