Updated: 05-Nov-24 10:23 ET

October ISM Non-Manufacturing Index

Updated: 05-Nov-24 10:23 ET

Highlights

• The ISM Services PMI increased to 56.0% in October (Briefing.com consensus 53.5%) from 54.9% in September. That is the highest reading since July 2022.
• The dividing line between expansion and contraction is 50.0%, so the October reading reflects services sector activity accelerating from September.

Key Factors

• The Business Activity/Production Index slowed to 57.2% from 59.9%.
• The New Orders Index fell to 57.4% from 59.4%.
• The Employment Index rose to 53.0% from 48.1%.
• The Prices Index decreased to 58.1% from 59.4%.
• The Supplier Deliveries Index rose to 56.4% from 52.1%.
• The Backlog of Orders Index fell to 47.7% from 48.3%.

Big Picture

• The key takeaway from the report is that the pace of expansion in the largest sector of the U.S. economy accelerated to a two-year high with employment activity returning to expansion after a brief contraction in September. The Backlog Index showed a deepening contraction, which could slow the pace of expansion in the coming months.

Category	OCT	SEP	AUG	JUL	JUN
Non-Manufacturing ISM index	56.0	54.9	51.5	51.4	48.8
Business Activity	57.2	59.9	53.3	54.5	49.6
New Orders	57.4	59.4	53.0	52.4	47.3
Employment	53.0	48.1	50.2	51.1	46.1
Deliveries (nsa)	56.4	52.1	49.6	47.6	52.2
Inventories (nsa)	57.2	58.1	52.9	49.8	42.9
Exports (nsa)	51.7	56.7	50.9	58.5	51.7
Imports (nsa)	50.2	52.7	50.3	53.3	44.0
Prices Paid	58.1	59.4	57.3	57.0	56.3