Jan 6: ISM Services Index Shows Contraction at Slower Rate

 
The ISM Services Index was reported at 40.6 for December, 3.3% higher than 37.3 in November, higher than the expected level of 36.4.  The index below 50 still indicates contraction for the third consecutive month, although at a slower rate as the index is rising.  The Non-Manufacturing Business Activity Index increased 6.6 percentage points to 39.6 percent. The New Orders Index increased 4.5 percentage points to 39.9 percent, and the Employment Index increased 3.4 percentage points to 34.7 percent.  Retail Trade reported growth in December attributed due to additional spending for the holiday season.  The remaining 17 industries,  reporting contraction in December,  are: Wholesale Trade; Professional, Scientific & Technical Services; Mining; Utilities; Transportation & Warehousing; Educational Services; Agriculture, Forestry, Fishing & Hunting; Other Services; Arts, Entertainment & Recreation; Management of Companies & Support Services; Public Administration; Finance & Insurance; Accommodation & Food Services; Construction; Real Estate, Rental & Leasing; Health Care & Social Assistance; and Information. 

 
The ISM Services Index was reported at 40.6 for December, 3.3% higher than 37.3 in November, higher than the expected level of 36.4.  The index below 50 still indicates contraction for the third consecutive month, although at a slower rate as the index is rising.  The Non-Manufacturing Business Activity Index increased 6.6 percentage points to 39.6 percent. The New Orders Index increased 4.5 percentage points to 39.9 percent, and the Employment Index increased 3.4 percentage points to 34.7 percent.  Retail Trade reported growth in December attributed due to additional spending for the holiday season.  The remaining 17 industries,  reporting contraction in December,  are: Wholesale Trade; Professional, Scientific & Technical Services; Mining; Utilities; Transportation & Warehousing; Educational Services; Agriculture, Forestry, Fishing & Hunting; Other Services; Arts, Entertainment & Recreation; Management of Companies & Support Services; Public Administration; Finance & Insurance; Accommodation & Food Services; Construction; Real Estate, Rental & Leasing; Health Care & Social Assistance; and Information.