ISM’s Non-Manufacturing Metric Reaches Highest Mark Since 2005

According to the Institute for Supply Management, economic activity in the non-manufacturing sector grew in September for the 93rd consecutive month.

The NMI metric increased 4.5% in the month, finishing at 59.8% and representing continued growth at a faster rate in the non-manufacturing sector. It is also the highest the NMI has reached since August 2005 when it came in at 61.3%.

As the NMI rose, so too did a number of the other indices in the ISM’s most recent report. The new orders index rose to 63%, up an impressive 5.9% compared to August. The employment index did not have such a large jump, but still managed to rise 0.6% to 56.8%. The biggest gainer was the prices index, which rose to 66.3%, an increase of 8.4% and the highest reading since February 2012.

The ISM also reported that 15 non-manufacturing industries reported growth in September, including transportation and warehousing, rental and leasing and wholesale trade. Mining was one of the two industries to report contraction.

“The non-manufacturing sector has reflected strong growth in the month of September despite the impact on the supply chain from the recent hurricanes,” said Anthony Nieves, chair of the Institute for Supply Management non-manufacturing business survey committee. “Respondents’ comments indicate a good outlook for business conditions.”

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Terry Mulreany
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