Non-Manufacturing Index Expanded to 59.9% in December

Tempe, AZ, February 5, 2018-The Non-Manufacturing Index (NMI) registered 59.9%, which is 3.9 percentage points higher than the seasonally adjusted December reading of 56%, according to the latest Non-Manufacturing ISM Report On Business.

This represents continued growth in the non-manufacturing sector at a faster rate.

The Non-Manufacturing Business Activity Index increased to 59.8%, 2 percentage points higher than the seasonally adjusted December reading of 57.8%, reflecting growth for the 102nd consecutive month, at a faster rate in January.

The New Orders Index registered 62.7%, 8.2 percentage points higher than the seasonally adjusted reading of 54.5% in December.

The Employment Index increased 5.3 percentage points in January to 61.6% from the seasonally adjusted December reading of 56.3%.

The Prices Index increased by two percentage points from the seasonally adjusted December reading of 59.9% to 61.9%, indicating that prices increased in January for the 23rd consecutive month.

According to the NMI, 15 non-manufacturing industries reported growth. The non-manufacturing sector reflected strong growth in January after two consecutive months of pullback. Overall, the majority of respondents’ comments are positive about business conditions and the economy. They also indicated that recent tax changes have had a positive impact on their respective businesses.

The 15 non-manufacturing industries reporting growth in January-listed in order-are management of companies & support services; arts, entertainment & recreation; mining; utilities; retail trade; construction; transportation & warehousing; public administration; real estate, rental & leasing; health care & social assistance; agriculture, forestry, fishing & hunting; educational services; finance & insurance; wholesale trade; and accommodation & food services. The three industries reporting contraction in January are information; other services; and professional, scientific & technical services.