By John S. McClenahen In contrast to the contraction in U.S. manufacturing activity in October, the non-manufacturing sector of the U.S. economy expanded for the ninth consecutive month in October, although slightly slower than in September. The ...
ByJohn S. McClenahen In contrast to the contraction in U.S. manufacturing activity in October, the non-manufacturing sector of the U.S. economy expanded for the ninth consecutive month in October, although slightly slower than in September. The index of non-manufacturing business activity compiled by the Tempe, Ariz.-based Institute for Supply Management (ISM) for last month was 53.1%, down eight-tenths of a percentage point from the 53.9% recorded for September. As with its manufacturing index, a figure above 50% on ISM's non-manufacturing scale indicates that business in the sector generally is increasing; a mark below 50% suggests it is contracting. Some 26% of ISM members reported increased business in October, down from 32% in September, while 21% saw business actually decline, a higher figure than September's 19%. In October, no change in business was reported by 53% of those surveyed, up from 49% in September. "The smaller number of respondents reporting increased activity and larger numbers reporting reduced activity reflects the slower rate of growth experienced by ISM members overall in October," the association notes.
