ISM Non-Manufacturing Index (NMI®) for October 2017

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for October 2017:

Predicted: 58.6%
Actual: 60.1%

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The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

Service categories include: Agriculture, Forestry, Fishing + Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation + Warehousing; Information; Finance + Insurance; Real Estate, Rental + Leasing; Professional, Scientific + Technical Services; Management of Companies + Support Services; Educational Services; Health Care + Social Assistance; Arts, Entertainment + Recreation; Accommodation + Food Services; Public Administration; and Other Services (services such as Equipment + Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning + Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).

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The previous month's NMI reading was 59.8%.

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From today' report:

"...Economic activity in the non-manufacturing sector grew in October for the 94th consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM® Report On Business®..."

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Here's a sampling of comments made by survey participants:

•     "Increasing commodity pricing along with rising construction cost is a concern in [the] quarter ahead."
   (Accommodation and Food Services)

•     "Business is strong, driven by large upticks in business from clients in the retail industry. Seasonal surge is starting out stronger than in a normal year."
   (Management of Companies and Support Services)

•     "The current hurricane damage will result in a shortage of some building materials and draw labor forces away from our area."
   (Construction)

•     "Positive trends continue. Business activity/results good. Revenue and net profit are above plan."
   (Finance and Insurance)

•     "We continue to struggle with the ‘unknowns’ around Obamacare, and its impacts on our health care and insurance businesses."
   (Health Care and Social Assistance)

•     "Business activity with oil companies remains flat. Oil field services, midstream, downstream and petrochemical sectors remain strong."
   (Professional, Scientific and Technical Services)

•     "Business levels increased due to hurricane recovery efforts."
   (Real Estate, Rental and Leasing)

•     "Outlook is favorable. Labor is in short supply and is constraining growth."
   (Wholesale Trade)

•     "Uptick based on replacement vehicle activity in hurricane-impacted areas of Texas and Florida."
   (Retail Trade)
  
  
  

Click here to view the complete ISM report