US Services Sector Growth Slows: ISM

The ISM Non-Manufacturing PMI index fell to 54.8 in October of 2016 from 57.1 in September and below market expectations of 56. Activity, new orders and employment grew at a slower pace while prices increased for the seventh straight month.
ISM | Joana Taborda | 11/3/2016 2:06:24 PM
The Non-Manufacturing Business Activity Index decreased to 57.7 percent, 2.6 percentage points lower than the September reading of 60.3 percent, reflecting growth for the 87th consecutive month, although at a slower rate in October. 

The New Orders Index registered 57.7 percent, 2.3 percentage points lower than the reading of 60 percent in September. 

The Employment Index decreased 4.1 percentage points in October to 53.1 percent from the September reading of 57.2 percent. 

The Prices Index increased 2.6 percentage points from the September reading of 54 percent to 56.6 percent, indicating prices increased in October for the seventh consecutive month. 

13 non-manufacturing industries reported growth in October. There has been a slight cooling-off in the non-manufacturing sector month-over-month, indicating that last month’s increases weren’t sustainable. Respondent’s comments remain mostly positive about business conditions and the overall economy. Several comments were made about the uncertainty on the impact of the upcoming U.S. presidential election.

US Services Sector Growth Slows: ISM