US ISM Non Manufacturing PMI Falls to 20-Month Low

The ISM Non-Manufacturing PMI index registered 55.3 percent in December of 2015, down from 55.9 percent in November and below market forecasts. It is the lowest reading since April of 2014 mainly due to a drop in prices, supplier deliveries and inventories.

The Prices Index decreased 0.6 percentage point from the November reading of 50.3 percent to 49.7 percent, indicating prices decreased in December for the third time in the last four months. The Suppliers Deliveries Index fell 4.5 percentage point to 48.5, the Inventories Index decreased 1.5 percentage point to 53 and the Backlog of Orders Index also went down 1.5 percentage point to 50.

The Non-Manufacturing Business Activity Index increased to 58.7 percent, which is 0.5 percentage point higher than the November reading of 58.2 percent, reflecting growth for the 77th consecutive month at a slightly faster rate. The New Orders Index registered 58.2 percent, 0.7 percentage point higher than the reading of 57.5 percent in November. The Employment Index increased 0.7 percentage point to 55.7 percent from the November reading of 55 percent and indicates growth for the 22nd consecutive month.

The 11 non-manufacturing industries reporting growth in December are: Accommodation & Food Services; Management of Companies & Support Services; Health Care & Social Assistance; Information; Retail Trade; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Finance & Insurance; Construction; Professional, Scientific & Technical Services; and Utilities. The five industries reporting contraction in December are: Other Services; Educational Services; Wholesale Trade; Public Administration; and Transportation & Warehousing.

US ISM Non Manufacturing PMI Falls to 20-Month Low

ISM | Joana Taborda |
1/6/2016 3:13:43 PM