US Service Sector Expands at Faster Pace in October

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The Institute for Supply Management (ISM) reported that its service index rose to 55.4 percent in October, 1 percentage point higher than the 54.4 percent registered in September. This marks the 46th consecutive month of growth. A reading above 50 indicates the sector is expanding. The Non-Manufacturing Business Activity Index increased to 59.7 percent, which is 4.6 percentage points higher than the 55.1 percent reported in September, reflecting growth for the 51st consecutive month. The only negative in the report saw the New Orders Index decline 2.8 percentage points to 56.8 percent.

 

The Institute of Supply Management reported that 10 of the 18 non-manufacturing industries reported growth in October — listed in order — are: Management of Companies & Support Services; Other Services; Retail Trade; Information; Educational Services; Wholesale Trade; Real Estate, Rental & Leasing; Public Administration; Professional, Scientific & Technical Services; and Finance & Insurance.

A number of respondents indicate that they were negatively impacted by the government shutdown.

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About the Author: Chris Wang

Chris Wang

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