Non-Manufacturing Sector Experiences Major Boost in January

Economic activity in the non-manufacturing sector grew in January for the 96th consecutive month, according to the Institute for Supply Management.

The NMI nearly reached 60% in January (59.9%), rising 3.9% from the reading in December. The non-manufacturing business activity index also hovered near the 60% mark, hitting 59.8% after sitting at 57.8% in December. That means there was continued growth at a faster rate and for the 102nd-straight month.

The new orders index skyrocketed up to 62.7%, 8.2 percentage points higher than December’s reading of 54.5%. The employment index also made its way past 60%, reaching a reading of 61.6%, which represented a 5.3% increase. The prices index went up 2% to 61.9%, keeping prices on an upward trajectory for the 23rd-straight month.

“The non-manufacturing sector reflected strong growth in January after two consecutive months of pullback,” said Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee. “Overall, the majority of respondents’ comments are positive about business conditions and the economy. They also indicated that recent tax changes have had a positive impact on their respective businesses.”

The 15 non-manufacturing industries reporting growth in January included rental and leasing, management of companies and support services and construction.

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