November 3, 2017 – The ISM Non-Manufacturing Index helps determine overall conditions in the services sector. Components evaluated are employment, business activity, new orders, and supplier deliveries. The nonmanufacturing sector represents a much larger share of the overall U.S. economy when compared to the manufacturing sector, making up approximately 80%. Readings above 50 indicate an expansion while readings below 50 signal decline.
The ISM Non-Manufacturing Index came in at 60.1, above the consensus of 58.6 and slightly above the previous month of 59.8. New orders lowered to 62.8 while the employment index increased 0.7% to 57.5. Business activity increased to 62.2 from 61.3.
Continuing on its trend, the ISM Non-Manufacturing Index has grown for 94 consecutive months, as any reading over 50 signals growth. In October, 16 out of the 18 industries resulted in growth. Agriculture, forestry, and fishing & hunting led the group with the strongest growth. Educational services and arts, entertainment & recreation experienced a contraction. October’s reading is the highest reading the ISM non-manufacturing index has seen since its start in 2008. This elevated reading helps drive economic growth higher as end of the year approaches quickly.