U.S. non-manufacturing sector’s growth accelerates in October - ISM

The Institute for Supply Management (ISM) reported on Tuesday its non-manufacturing index (NMI) came in at 54.7 in October, which was 2.1 percentage points above the September reading of 52.6 percent. This represents continued growth in the non-manufacturing sector, at a faster rate.

Economists forecast the index to increase to 53.4 last month. A reading above 50 signals expansion, while a reading below 50 indicates contraction.

Of the 18 manufacturing industries, 13 reported growth last month, the ISM said, adding that the respondents continued to be concerned about tariffs, labor resources and the geopolitical climate.

According to the report, the ISM’s non-manufacturing business activity measure rose to 57 percent, 1.8 percentage points higher than the September reading of 55.2 percent. That reflected growth for the 123rd consecutive month, at a slower rate in August. The new orders gauge increased to 55.6 percent, up 1.9 percentage points from the reading of 53.7 percent in September. The Employment indicator surged 3.3 percentage points in October to 53.7 percent from the September reading of 50.4 percent. Meanwhile, the Prices Index declined 3.4 percentage points from the September reading of 60 percent to 56.6 percent, indicating that prices increased in October for the 29th consecutive month.