Economy: ISM Non-Manufacturing Index (NMI®) for September 2019

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for September 2019:

Predicted: 55.5%
Actual: 52.6% (-3.8 points month-on-month change)

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Previous month: 56.4%

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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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From today' report:

"...Economic activity in the non-manufacturing sector grew in September for the 116th 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:

'Tariffs are adding uncertainty to short-term pricing on certain commodities, but suppliers are finding alternate solutions. The bigger impacts appear to be on demand side, which is driving short-term favorability in certain domestic markets.'
(Accommodation + Food Services)

'Demand has been variable: up one month, down the next. I think customers are watching our input costs and buying ahead on the dips, to the extent that contracts allow.'
(Agriculture, Forestry, Fishing + Hunting)

'We are very busy right now [and] expect to be so for the next 12 months. We are still very shorthanded with qualified labor.'
(Construction)

'Gearing up for the fourth quarter of 2019. On track to end the year generally as anticipated, considering interest-rate changes, trade and tariff issues and other economic indicators and trends.'
(Finance + Insurance)

'We continue with low patient census, which affects our orders and revenue.'
(Health Care + Social Assistance)

'As employee cost [wages] are increasing in this better economy, it is getting harder to fight price increases on goods and services.'
(Information)

'Costs are going up, from labor to chemicals to metals.'
(Management of Companies + Support Services)

'While Chinese tariffs are understandable, they are impacting our supply chain decisions. We are actively pursuing alternate sources for our China-based production. At this point, we have not passed on tariff costs to our customers, but we are evaluating all options.'
(Other Services)

'Business continues to pick up as we quickly approach Q4. Week by week, we inch closer to a much-anticipated holiday retail season, which requires not only last-minute buys, but a push to fill open positions.'
(Retail Trade)

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