October 4, 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 non-manufacturing 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 59.8, well above the consensus of 55.5 and above the previous month of 55.3. New orders jumped up to 61.3 while the employment index also increased to 56.8. Business activity increased to 61.3 from 57.5.
For 93 consecutive months the ISM Non-Manufacturing Index has been over 50, signaling services sector growth. Similar to August, 15 of the 18 industries in the services sector expanded in September. Retail trade, other services, management of companies & support services, and information were among the top growers last month. Arts, entertainment & recreation, and mining were the only industries to experience a contraction in September. Despite the recent hurricanes, the services sector continues to grow and help stimulate the economy at a healthy pace.