December 5, 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 57.4, below the consensus of 59.0 and below the previous month of 60.1. New orders lowered to 58.7 along with the employment index to 55.3. Business activity decreased to 61.4 from 62.2.
Despite the dip in the Non-Manufacturing Index, it still continues on its trend of growth for 95 consecutive months. Similar to last month, in November, 16 out of the 18 industries reported growth. Retail trade, wholesale trade, and utilities showed the strongest growth. Coming off of a strong report in October, agriculture, forestry, fishing & hunting contracted in November. Even though the Non-Manufacturing Index declined, any reading above 50 still indicated growth.