Services Sector Celebrates 4 Straight Years of Growth

The services sector improved in January for the 48th straight month, according to the Institute for Supply Management's Report on Business released today. 

The Institute's Non-Manufacturing Index registered an overall 54% rating, up from December's 53%, and ever-so-slightly ahead of analyst expectations of 53.9%. An above-50 rating denotes growth, while less than 50 implies contraction.

The Index has been in growth territory since 2010, but readings during the past 12 months remain somewhat erratic.

ISM Non-Manufacturing Index Chart

ISM Non-Manufacturing Index data by YCharts. 

Diving deeper into index components, business activity added on 2.0 points to reach 56.3%, new orders inched ahead 0.5 points to 50.9%, and employment increased 0.8 points to 56.4%. Although backlog of orders rose three points, this component remains in contraction at 49%. New export orders also shrank, down 2.5 points to 49.0%.

Eleven services industries reported growth in January, led by company management and support services. Seven reported contractions, with mining recording the biggest dip of any industry.

link


Read/Post Comments (0) | Recommend This Article (1)

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.

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: 2824730, ~/Articles/ArticleHandler.aspx, 10/26/2014 2:09:18 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...


Advertisement