Economic activity in the non-manufacturing sector grew in October for the 23rd consecutive month, according to the Institute for Supply Management’s (ISM) latest Report on Business Non-Manufacturing Index (NMI).

The NMI registered 52.9% in October, 0.1 percentage point lower than the 53% registered in September, and indicating continued growth at a slightly slower rate in the non-manufacturing sector, said Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee.

A reading above 50% indicates the non-manufacturing sector economy is generally expanding; below 50% indicates the non-manufacturing sector is generally contracting.

The Non-Manufacturing Business Activity Index decreased 3.3 percentage points to 53.8%, reflecting growth for the 27th consecutive month. The report was issued

The New Orders Index decreased by 4.1 percentage points to 52.4%. The Employment Index increased 4.6 percentage points to 53.3%, indicating growth in employment after one month of contraction. The Prices Index decreased 4.8 percentage points to 57.1%, indicating prices increased at a slower rate in October when compared to September.

According to the NMI, eight non-manufacturing industries reported growth in October. Even though there is month-over-month growth in the Employment Index, respondents are still expressing concern over available labor resources and job growth.

The continued strong push for inventory reduction by supply management professionals has resulted in contraction in the Inventories Index for the first time in eight months. Respondents’ comments are mixed and reflect concern about future business conditions.

The eight non-manufacturing industries reporting growth in October based on the NMI composite index – listed in order – are: Management of Companies & Support Services; Information; Transportation & Warehousing; Mining; Retail Trade; Other Services; Accommodation & Food Services; and Professional, Scientific & Technical Services.

The eight industries reporting contraction in October – listed in order – are: Arts, Entertainment & Recreation; Public Administration; Real Estate, Rental & Leasing; Educational Services; Finance & Insurance; Utilities; Construction; and Wholesale Trade.

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