Wednesday, February 03, 2010

ISM Non-Manufacturing Shows Slight Expansion in January

by Bill McBride on 2/03/2010 10:00:00 AM

This is another weak service report. According to this survey, the service sector barely expanded in January, and employment also contracted in the non-manufacturing sector "for the 25th consecutive month".

From the Institute for Supply Management: January 2010 Non-Manufacturing ISM Report On Business®

In January, the NMI registered 50.5 percent, indicating growth in the non-manufacturing sector after two months of contraction. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting.
...
"The NMI (Non-Manufacturing Index) registered 50.5 percent in January, 0.7 percentage point higher than the seasonally adjusted 49.8 percent registered in December, indicating growth in the non-manufacturing sector. The Non-Manufacturing Business Activity Index decreased 1 percentage point to 52.2 percent, reflecting growth for the second consecutive month. The New Orders Index increased 2.7 percentage points to 54.7 percent, and the Employment Index increased 1 percentage point to 44.6 percent.
...
Employment activity in the non-manufacturing sector contracted in January for the 25th consecutive month. ISM's Non-Manufacturing Employment Index for January registered 44.6 percent.
emphasis added