US Services Sector Growth at 11-Month High: ISM
The ISM Non-Manufacturing PMI index jumped 5.7 percentage points to 57.1 percent in September of 2016 after slumping to a 6-1/2-year low of 51.4 in August. It is the highest reading since October and well above market expectations of 53 as business activity, new orders and employment all expanded at a faster pace.
10/5/2016 2:23:33 PM
The Non-Manufacturing Business Activity Index increased substantially to 60.3 percent, 8.5 percentage points higher than the August reading of 51.8 percent, reflecting growth for the 86th consecutive month, at a noticeably faster rate in September.
The New Orders Index registered 60 percent, 8.6 percentage points higher than the reading of 51.4 percent in August.
The Employment Index increased 6.5 percentage points in September to 57.2 percent from the August reading of 50.7 percent.
The Prices Index increased 2.2 percentage points from the August reading of 51.8 percent to 54 percent, indicating prices increased in September for the sixth consecutive month.
14 out of 18 non-manufacturing industries reported growth in September. The comments from the respondents are mostly positive about business conditions and the overall economy. A degree of uncertainty does exist due to geopolitical conditions coupled with the upcoming U.S. presidential election.