Non-Manufacturing Growth Continued in February

Tempe, AZ, April 5, 2016—The Non-Manufacturing Index registered 54.5% in March, 1.1 percentage points higher than the February reading of 53.4%, according to the ISM Report On Business.

This represents continued growth in the non-manufacturing sector at a slightly faster rate. The Non-Manufacturing Business Activity Index increased to 59.8%, 2 percentage points higher than the February reading of 57.8%, reflecting growth for the 80th consecutive month, with a faster rate in March.

The New Orders Index registered 56.7%, 1.2 percentage points higher than the reading of 55.5% in February.

The Employment Index increased 0.6 percentage point to 50.3% from the February reading of 49.7% and indicates growth after a month of contraction.

The Prices Index increased 3.6 percentage points from the February reading of 45.5% to 49.1%, indicating prices decreased in March for the fifth time in the last seven months.

The 12 non-manufacturing industries reporting growth in March — listed in order — are Educational Services; Information; Wholesale Trade; Finance & Insurance; Health Care & Social Assistance; Retail Trade; Mining; Management of Companies & Support Services; Accommodation & Food Services; Public Administration; Utilities; and Professional, Scientific & Technical Services.

The two industries reporting contraction in March are Arts, Entertainment & Recreation and Transportation & Warehousing.