The ISM non-manufacturing index eased to a still-strong 58.6 in September after surging to 59.6 in the previous month. All subcomponents remain in expansion territory.
Down, But Still Expansionary
- Although the index fell a full percentage point, a reading of 58.6 remains the recovery’s highest before July of this year and continues to point to expansion outside of the manufacturing sector.
- Business activity and new orders posted sizable declines, but both components remain above 60. Most subcomponents also dropped but all remain above the critical threshold of 50.
Order Up
- New orders have been exceptionally strong recently, with September marking the fifth straight month above 60. Utilities, information and retail trade were the industries showing the strongest growth for the month.
- New export orders surged 5 points to 57.5 in the month. The trade deficit in the U.S. has already narrowed for the first two months of the third quarter
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