Updated: 03-Nov-23 10:21 ET

October ISM Non-Manufacturing Index

Updated: 03-Nov-23 10:21 ET

Highlights

• The ISM Services PMI decreased to 51.8% in October (Briefing.com consensus 53.0%) from 53.6% in September.
• The dividing line between expansion and contraction is 50.0%, so the October reading connotes an expansion in services sector activity, but at a slower pace than September.
• October marked the tenth consecutive month of growth for the services sector.

Key Factors

• The Business Activity/Production Index dropped to 54.1% from 58.8%.
• The New Orders Index rose to 55.5% from 51.8%.
• The Employment Index decreased to 50.2% from 53.4%.
• The Prices Index dipped to 58.6% from 58.9%.
• The Suppliers Deliveries Index fell to 47.5% from 50.4%.
• The Backlog of Orders Index jumped to 50.9% from 48.6%.

Big Picture

• The key takeaway from the report is that the largest sector of the U.S. economy is in a slower growth mode, but, importantly for the soft landing view, is not contracting.

Category	OCT	SEP	AUG	JUL	JUN
Non-Manufacturing ISM index	51.8	53.6	54.5	52.7	53.9
Business Activity	54.1	58.8	57.3	57.1	59.2
New Orders	55.5	51.8	57.5	55.0	55.5
Employment	50.2	53.4	54.7	50.7	53.1
Deliveries (nsa)	47.5	50.4	48.5	48.1	47.6
Inventories (nsa)	49.5	54.2	57.7	50.4	55.9
Exports (nsa)	48.8	63.7	62.1	61.1	61.5
Imports (nsa)	60.0	50.6	52.3	52.3	54.6
Prices Paid	58.6	58.9	58.9	56.8	54.1