Services Sector Expands (More Slowly) for January

The services sector expanded in January for the 37th consecutive month, according to the Institute for Supply Management's Report on Business released today.

The Institute's Non-Manufacturing Index registered 55.2% for January, 0.5 percentage points lower than the seasonally adjusted 55.7% registered in December and indicating continued growth at a slightly slower rate, according to the ISM. Market analysts had expected as much, and their 55.1% prediction came in just 0.1 percentage points below the actual index. A reading above 50% indicates expansion.

A retail trade representative surveyed for the report and quoted in the press release described the economic environment as hesitantly growing: "There seems to be some stabilization in recent months. Business seems a little more confident, and consumers are participating once again."

The Non-Manufacturing Index is a composite of different indicators including business activity, new orders, employment, and prices. The employment index posted especially strong gains, jumping 2.2 percentage points, indicating growth in employment for the sixth consecutive month. Inventories and backlogs of orders both contracted in January, while the inventory sentiment's 6-percentage-point increase is a warning sign of "too high" growth in inventories, according to the ISM.

This new report comes four days after the Institute reported a 2.9-percentage-point increase in its Manufacturing Index for January.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2236940, ~/Articles/ArticleHandler.aspx, 9/28/2016 9:53:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,274.87 46.57 0.26%
S&P 500 2,162.68 2.75 0.13%
NASD 5,310.59 4.88 0.09%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes