Growth in Non-Manufacturing Continued in Dec. But At Slower Rate

Tempe, AZ, February 3, 2017—The Non-Manufacturing Index registered 56.5%, which is 0.1 percentage point lower than the seasonally adjusted December reading of 56.6, according to Non-Manufacturing (NMI) ISM Report On Business.

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

The Non-Manufacturing Business Activity Index decreased to 60.3%, 0.6 percentage point lower than the seasonally adjusted December reading of 60.9%, reflecting growth for the 90th consecutive month, at a slightly slower rate in January.

The New Orders Index registered 58.6%, 2.1 percentage points lower than the seasonally adjusted reading of 60.7% in December.

The Employment Index increased 2 percentage points in January to 54.7% from the seasonally adjusted December reading of 52.7%.

The Prices Index increased 2.9 percentage points from the seasonally adjusted December reading of 56.1% to 59%; indicating prices increased for the tenth consecutive month, at a faster rate in January.

According to the NMI, 12 non-manufacturing industries reported growth in January. The non-manufacturing sector begins 2017 with a cooling-off in the rate of growth month-over-month. The sector still reflects strong growth.

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

The five industries reporting contraction in January are Real Estate, Rental & Leasing; Educational Services; Transportation & Warehousing; Information; and Arts, Entertainment & Recreation.