Economic activity in US non-manufacturing sector grew in September for 33rd straight month; Institute for Supply Management's index rose to 55.1%, up 1.4 percentage points from August
October 3, 2012
– Economic activity in the non-manufacturing sector grew in September for the 33rd consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business®.
The report was issued today by Anthony Nieves, C.P.M., CFPM, chair of the Institute for Supply Management™ Non-Manufacturing Business Survey Committee. "The NMI™ registered 55.1 percent in September, 1.4 percentage points higher than the 53.7 percent registered in August. This indicates continued growth this month at a faster rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 59.9 percent, which is 4.3 percentage points higher than the 55.6 percent reported in August, reflecting growth for the 38th consecutive month. The New Orders Index increased by 4 percentage points to 57.7 percent. The Employment Index decreased by 2.7 percentage points to 51.1 percent, indicating growth in employment for the second consecutive month but at a slower rate. The Prices Index increased 3.8 percentage points to 68.1 percent, indicating higher month-over-month prices when compared to August. According to the NMI™, 12 non-manufacturing industries reported growth in September. Respondents' comments continue to be mixed; however, the majority indicate a slightly more positive perspective on current business conditions."
The 12 non-manufacturing industries reporting growth in September — listed in order — are: Transportation & Warehousing; Retail Trade; Construction; Utilities; Educational Services; Management of Companies & Support Services; Finance & Insurance; Public Administration; Accommodation & Food Services; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Information. The four industries reporting contraction in September are: Mining; Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; and Other Services.
WHAT RESPONDENTS ARE SAYING ...
"Business remains steady — optimistic for good fourth quarter." (Information)
"Drought is putting pressure on food cost; tourism slowdown over the summer." (Arts, Entertainment & Recreation)
"Things feel like the economy is moving. More new small business; unemployment declining; stock market up." (Health Care & Social Assistance)
"Economic outlook is improving, but company is putting a major effort into more cost reductions and reorganization, resulting in more collaboration between procurement and our internal customers." (Professional, Scientific & Technical Services)
"The general slowdown which began in March showed some reversal in August." (Wholesale Trade)
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