US Services Sector Growth Eases In January: ISM

The ISM Non-Manufacturing PMI index edged down to 56.5 in January of 2017 from a downwardly revised 56.6 in December and below market expectations of 57. Business activity and new orders eased and price pressures intensified while payrolls rose faster. Comments from non-manufacturers were mixed, indicating both optimism and a degree of uncertainty in the business outlook as a result of the change in government administration.

The New Orders Index registered 58.6 percent, 2.1 percentage points lower than the seasonally adjusted reading of 60.7 percent in December.

The Employment Index increased 2 percentage points in January to 54.7 percent from the seasonally adjusted December reading of 52.7 percent.

The Prices Index increased 2.9 percentage points from the seasonally adjusted December reading of 56.1 percent to 59 percent; indicating prices increased for the 10th consecutive month, at a faster rate in January. 

The 12 non-manufacturing industries reporting growth in January — listed in order — are: Mining; Other Services; Utilities; Health Care & Social Assistance; Finance & Insurance; Public Administration; Accommodation & Food Services; Retail Trade; Construction; Wholesale Trade; Professional, Scientific & Technical Services; and Management of Companies & Support Services. The five industries reporting contraction in January are: Real Estate, Rental & Leasing; Educational Services; Transportation & Warehousing; Information; and Arts, Entertainment & Recreation.

US Services Sector Growth Eases In January: ISM

ISM | Joana Taborda |
2/3/2017 3:09:42 PM