Sunday, February 10, 2013

USA Services Sector Expands at Slower Rate, Employment Rises

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ISM: Monthly USA NMI

ISM Non-Manufacturing Index (NMI) by Month
NMI > 50.0 is expansion, NMI < 50.0 is contraction



Anthony Nieves, Chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee said, "The NMI registered 55.2 percent in January, 0.5 percentage point lower than the seasonally adjusted 55.7 percent registered in December. This indicates continued growth at a slightly slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index registered 56.4 percent, which is 4.4 percentage points lower than the seasonally adjusted 60.8 percent reported in December, reflecting growth for the 42nd consecutive month. The New Orders Index decreased by 3.9 percentage points to 54.4 percent, and the Employment Index increased 2.2 percentage points to 57.5 percent, indicating growth in employment for the sixth consecutive month. The Prices Index increased 1.9 percentage points to 58 percent, indicating prices increased at a faster rate in January when compared to December. According to the NMI™, eight non-manufacturing industries reported growth in January. Respondents' comments are mixed about the economy and business conditions; however, the majority of respondents are optimistic about the overall direction."

ISM Non-Manufacturing Index (NMI) by Year
NMI > 50.0 is expansion, NMI < 50.0 is contraction



American Services Sector Employment Rises "Employment activity in the non-manufacturing sector grew in January for the sixth consecutive month. ISM's Non-Manufacturing Employment Index registered 57.5 percent, which reflects an increase of 2.2 percentage points when compared to the seasonally adjusted 55.3 percent registered in December. Nine industries reported increased employment, seven industries reported decreased employment, and two industries reported unchanged employment compared to December. Comments from respondents include: "Hiring more sales and marketing staff" and "Open and new positions were filled."

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