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Tuesday, October 20, 2020
HomeNewsEconomyISM Services PMI Rises to 57.8 in September, Beating Forecast

ISM Services PMI Rises to 57.8 in September, Beating Forecast

United States Postal Service (USPS) workers don face masks and gloves behind plexiglass at the USPS location on N. Main in Gainesville, Fla., during the coronavirus (COVID-19) pandemic. (Photo: People's Pundit Daily/PPD)

U.S. Service Sector Activity Stronger than Expected in September

United States Postal Service (USPS) workers don face masks and gloves behind plexiglass at the USPS location on N. Main in Gainesville, Fla., during the coronavirus (COVID-19) pandemic. (Photo: People's Pundit Daily/PPD)
United States Postal Service (USPS) workers don face masks and gloves behind plexiglass at the USPS location on N. Main in Gainesville, Fla., during the coronavirus (COVID-19) pandemic. (Photo: People’s Pundit Daily/PPD)

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 PMIManufacturing PMI®
IndexSeries Index SepSeries Index AugPercent Point ChangeDirectionRate of ChangeTrend** (Months)Series Index SepSeries Index AugPercent Point Change
Services PMI57.856.9+0.9GrowingFaster455.456.0-0.6
Business Activity/ Production63.062.4+0.6GrowingFaster461.063.3-2.3
New Orders61.556.8+4.7GrowingFaster460.267.6-7.4
Employment51.847.9+3.9GrowingFrom Contracting149.646.4+3.2
Supplier Deliveries54.960.5-5.6SlowingSlower1659.058.2+0.8
Inventories48.845.8+3.0ContractingSlower247.144.4+2.7
Prices59.064.2-5.2IncreasingSlower662.859.5+3.3
Backlog of Orders50.156.6-6.5GrowingSlower455.254.6+0.6
New Export Orders52.655.8-3.2GrowingSlower254.353.3+1.0
Imports46.650.8-4.2ContractingFrom Growing154.055.6-1.6
Inventory Sentiment55.452.5+2.9Too HighFaster2N/AN/AN/A
Customers’ InventoriesN/AN/AN/AN/AN/AN/A37.938.1-0.2
Overall EconomyGrowingFaster4
Services SectorGrowingFaster4
Services ISM® Report On Business® data is seasonally adjusted for the Business Activity, New Orders, Prices and Employment indexes. Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Inventories indexes.
**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).

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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