US Services Growth Slows for 2nd Month: ISM


The ISM Non-Manufacturing PMI index for the United States fell to 56.7 in January of 2019 from 58 in December and below market expectations of 57.2. The reading pointed to the weakest expansion in the services sector in six months. While respondents showed concerns about the impacts of the government shutdown they remain mostly optimistic about overall business conditions.

Slower growth was seen in business activity (59.7 from 61.2), new orders (57.7 from 62.7), and new export orders (50.5 from 59.5). Also, inventories contracted (49 from 51.5) and price pressures intensified (59.4 from 58). On the other hand, employment (57.8 from 56.6) and backlog of orders (52.5 from 50.5) rose faster. 

The 11 non-manufacturing industries reporting growth in January — listed in order — are: Transportation & Warehousing; Health Care & Social Assistance; Mining; Accommodation & Food Services; Wholesale Trade; Finance & Insurance; Utilities; Real Estate, Rental & Leasing; Construction; Professional, Scientific & Technical Services; and Public Administration. Seven non-manufacturing industries reported contraction in January in the following order: Retail Trade; Educational Services; Information; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Management of Companies & Support Services; and Other Services.

US Services Growth Slows for 2nd Month: ISM


ISM | Joana Taborda | joana.taborda@tradingeconomics.com
2/5/2019 3:46:38 PM