Growth Continued but Slowed for Non-Manufacturing Business in January

Tempe, AZ, February 3, 2016—The Institute for Supply Management’s (ISM) Non-Manufacturing Report On Business (NMI) registered 53.5% in January, 2.3 percentage points lower than the seasonally adjusted December reading of 55.8%. This represents continued growth in the non-manufacturing sector at a slower rate.

The Non-Manufacturing Business Activity Index decreased to 53.9%, which is 5.6 percentage points lower than the seasonally adjusted December reading of 59.5%, reflecting growth for the 78th consecutive month at a slower rate.

The New Orders Index registered 56.5%, 2.4 percentage points lower than the seasonally adjusted reading of 58.9% in December.

The Employment Index decreased 4.2 percentage points to 52.1% from the seasonally adjusted December reading of 56.3% and indicates growth for the 23rd consecutive month.

The Prices Index decreased 4.6 percentage points from the seasonally adjusted December reading of 51% to 46.4%, indicating prices decreased in January for the third time in the last five months.

The ten non-manufacturing industries reporting growth in January—listed in order—are Finance & Insurance; Real Estate, Rental & Leasing; Utilities; Retail Trade; Information; Construction; Agriculture, Forestry, Fishing & Hunting; Health Care & Social Assistance; Management of Companies & Support Services; and Public Administration.

The eight industries reporting contraction in January—listed in order—are Mining; Educational Services; Wholesale Trade; Other Services; Arts, Entertainment & Recreation; Accommodation & Food Services; Transportation & Warehousing; and Professional, Scientific & Technical Services.