NEW YORK - The Institute for Supply Management's non-manufacturing business activity composite index was 53.2 in September, up from 51.5 in August, on a seasonally adjusted basis, the group said today.
Economists polled by Thomson Reuters had expected a 51.5 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index, closely watched for signs of inflation, slid to 60.1 from 60.3.
The employment index increased to 50.2 from 48.2.
The business activity/production index fell to 52.8 from 54.4, the new orders index was at 54.9, up from 52.4; backlog of orders slipped to 48.0 from 50.5; new export orders increased to 58.0 from 46.5; inventories decreased to 47.0 from 53.5; inventory sentiment slipped to 59.5 from 60.0; the supplier deliveries index grew to 55.0 from 51.0; and imports increased to 53.0 from 50.5.
“The NMI (Non-Manufacturing Index) registered 53.2 percent in September, 1.7 percentage points higher than the 51.5 percent registered in August, indicating continued growth in the non-manufacturing sector at a faster rate,” said Anthony Nieves, chair of the ISM's Non-Manufacturing Business Survey Committee. “The Non-Manufacturing Business Activity Index decreased 1.6 percentage points to 52.8 percent, reflecting growth for the 10th consecutive month, but at a slower rate than in August. The New Orders Index increased 2.5 percentage points to 54.9 percent, and the Employment Index increased 2 percentage points to 50.2 percent, indicating growth in employment for the third time in the last five months. The Prices Index decreased 0.2 percentage point to 60.1 percent, indicating that prices increased in September at a slightly slower rate. According to the NMI, 11 non-manufacturing industries reported growth in September. Respondents' comments continue to be mixed about business conditions, with a slight majority reflecting optimism.”
Members' general comments on business in the month included:
"General state of the business has not changed in the last three months. The market is still soft for new sales due to financing requirements." (Construction)
"Business seems to be flat from last month." (Finance & Insurance)
"Signs that the economy may be improving, but our sector is still flat or declining." (Professional, Scientific & Technical Services)
"Business activity is generally stable — slightly better than last year." (Accommodation & Food Services)
"Third quarter is looking profitable with improving confidence and expectations in the economy. Capital expenditures are being approved." (Wholesale Trade)
