Activity in the U.S. non-manufacturing sector continued growing in October, but not as fast as the month before.

The latest reading from the nation’s purchasing and supply executives shows the second straight monthly drop and its lowest level since June, according to the Non-Manufacturing Institute for Supply Management Report On Business.

The index registered 57.1% in October, 1.5 percentage points lower than the September reading of 58.6%. This still represents continued growth for the 57th consecutive month in the non-manufacturing sector because a reading over 50 indicates expansion while one below 50 is a sign of contraction.

The Non-Manufacturing Business Activity Index decreased to 60%, which is 2.9 percentage points lower than the September reading of 62.9%, reflecting growth for the 63rd consecutive month but at a slower rate. The New Orders Index registered 59.1%, 1.9 percentage points lower than the reading of 61% registered in September. The Employment Index increased 1.1 percentage points to 59.6% from the September reading of 58.5% and indicates growth for the eighth consecutive month.

According to the index, all 16 non-manufacturing industries reported growth in October.

“The majority of the respondents’ comments reflect favorable business conditions, however, there is an indication that there continues to be a leveling off from the strong rate of growth of the preceding months,” said Anthony Nieves, chair of the Institute for Supply Management ISM Non-Manufacturing Business Survey Committee.

The report was released on the same day a separate one showed the U.S. economy added more than 200,000 private sector jobs for the seventh straight month.

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Evan Lockridge

Evan Lockridge

Former Business Contributing Editor

Trucking journalist since 1990, in the news business since early ‘80s.

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