Updated: 05-Feb-19 10:28 ET

January ISM Non-Manufacturing Index

Updated: 05-Feb-19 10:28 ET

Highlights

• The ISM Non-Manufacturing Index checked in at 56.7% for January (Briefing.com consensus 57.0%), down from an upwardly revised 58.0% (from 57.6%) in December.
• The dividing line between expansion and contraction is 50.0%. Accordingly, the non-manufacturing sector expanded in January, but at a slower pace.

Key Factors

• The New Orders Index fell to 57.7% from 62.7%.
• The Employment Index increased to 57.8% from 56.6%.
• The Prices Index rose to 59.4% from 58.0%.
• The New Export Orders Index dropped to 50.5% from 59.5%.

Big Picture

• The key takeaway from the report is that non-manufacturing sector activity slowed in the face of concerns about the partial government shutdown, yet respondents reportedly remain mostly optimistic about overall business conditions.
• According to the ISM, the past relationship between the non-manufacturing index and the overall economy indicates the January reading corresponds to a 2.8% increase in real GDP on an annualized basis.

Category	JAN	DEC	NOV	OCT	SEP
Non-Manufacturing ISM index	56.7	58.0	60.7	60.3	61.6
Business Activity	59.7	61.2	65.2	62.5	65.2
New Orders	57.7	62.7	62.5	61.5	61.6
Employment	57.8	56.6	58.4	59.7	62.4
Deliveries (nsa)	51.5	51.5	56.5	57.5	57.0
Inventories (nsa)	49.0	51.5	57.5	56.0	54.5
Exports (nsa)	50.5	59.5	57.5	61.0	61.0
Imports (nsa)	52.0	53.5	54.5	51.0	55.0
Prices Paid	59.4	58.0	64.3	61.7	64.2