Tempe, AZ, November 3--Business activity in the non-manufacturing sector increased in October 2004, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business.
The report stated that business activity continued to increase in October in the non-manufacturing sector, with the fastest rate of increase since July. The Business Activity Index for October is 59.8 percent, up 3.1 percentage points from September's 56.7 percent. October's index indicates continued growth across most non-manufacturing industries.
In October, 12 industry groups reported growth, one indicated contraction, and four reported business unchanged from September. Increased business activity in October was reported by 34 percent of members, compared to 35 percent in September. Reduced activity was reported by 15 percent of members, compared to 16 percent in September. In October, the remaining 51 percent of members indicated no change in business activity, compared to 49 percent that reported no change in September.
The Backlog of Orders Index remained steady at 52.5 percent, indicating growth in order backlogs for the 18th consecutive month at the same rate of increase as in September.
The October New Orders Index increased from 58.5 percent in September to 60.5 percent in October. This indicates a faster rate of increase of new orders in October compared to September. Members reported that the prices they pay increased in October for the 31st consecutive month, with a faster rate of increase than in September.
October's Prices Index is 74.1 percent, a rise of 7 percentage points from the 67.1 percent reported in September. This month, 44 percent of all respondents and 15 of 17 non-manufacturing industries reported paying higher prices compared to September.
