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Economic Watch: Non-Manufacturing Activity Continues Growing

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

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
November 5, 2014
2 min to read


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

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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.

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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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