Non-Manufacturing Expanded to 59.8% in September

Tempe, AZ, October 4, 2017-The Non-Manufacturing Index (NMI) registered 59.8%, which is 4.5 percentage points higher than the August reading of 55.3%, according to the latest Non-Manufacturing ISM Report On Business.

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

This is the highest reading since August 2005 when the index registered 61.3%.

The Non-Manufacturing Business Activity Index increased to 61.3%, 3.8 percentage points higher than the August reading of 57.5%, reflecting growth for the 98th consecutive month, at a faster rate in September.

The New Orders Index registered 63%, 5.9 percentage points higher than the reading of 57.1% in August.

The Employment Index increased 0.6 percentage point in September to 56.8% from the August reading of 56.2%.

The Prices Index increased substantially by 8.4 percentage points from the August reading of 57.9% to 66.3%, indicating prices increased in September for the fourth consecutive month. This is the highest reading since February 2012 when the index registered 67.6%.

According to the NMI, 15 non-manufacturing industries reported growth.

The 15 non-manufacturing industries reporting growth in September-listed in order-are: Retail Trade; Other Services; Management of Companies & Support Services; Information; Utilities; Transportation & Warehousing; Real Estate, Rental & Leasing; Wholesale Trade; Construction; Professional, Scientific & Technical Services; Finance & Insurance; Health Care & Social Assistance; Public Administration; Educational Services; and Accommodation & Food Services.

The two industries reporting contraction in September are Arts, Entertainment & Recreation; and Mining.