US Services Growth Slows for 2nd Month

The ISM Non-Manufacturing PMI index for the United States fell to 55.9 in December of 2017 from 57.4 in November and below market expectations of 57.6. The reading pointed to the smallest expansion in the non-manufacturing sector in four months. Production, new orders and inventories eased and price pressures intensified. However, businesses reported optimism for business conditions and the economic outlook going forward.
ISM | Joana Taborda | joana.taborda@tradingeconomics.com 1/5/2018 3:16:02 PM
A slowdown was recorded for business activity/production (57.3 from 61.4); new orders (64.3 from 58.7); inventories (53.5 from 54.5); backlog of orders (50 from 51.5) and new export orders (56.5 from 57). Also, prices rose faster (60.8 from 60.7). On the other hand, employment (56.3 from 55.3), supplier deliveries (55.5 from 54) and inventory sentiment went up (62.5 from 56). 

The 14 non-manufacturing industries reporting growth in December — listed in order — are: Retail Trade; Utilities; Arts, Entertainment & Recreation; Other Services; Health Care & Social Assistance; Accommodation & Food Services; Finance & Insurance; Real Estate, Rental & Leasing; Transportation & Warehousing; Mining; Construction; Wholesale Trade; Public Administration; and Professional, Scientific & Technical Services. The three industries reporting contraction in December are: Information; Educational Services; and Management of Companies & Support Services.

US Services Growth Slows for 2nd Month