From Procurement to Profit

Non-Manufacturing Sector Grew for 96th Month in December

Economic activity in the non-manufacturing sector grew in December for the 96th consecutive month, say the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business (NMI).

Anthony Nieves,  Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee, said the NMI registered 55.9%, 1.5 percentage points lower than in November, reflecting a slowing rate of growth in the non-manufacturing sector.

The Non-Manufacturing Business Activity Index decreased to 57.3%, 4.1 percentage points lower than in November, reflecting growth for the 101st consecutive month, also at a slower rate.

The New Orders Index registered 54.3%, 4.4 percentage points lower than in November.

The Employment Index increased 1 percentage point in December to 56.3 percent, from November’s reading of 55.3%.

The Prices Index increased by 0.1 percentage point from the November reading of 60.7% to 60.8 percent, indicating that prices increased in December for the seventh consecutive month.

December was the second consecutive month of pullback in the rate of growth.

According to the NMI, 14 non-manufacturing industries reported growth.

Overall, the majority of respondents’ comments indicate that they finished the year on a positive note. They expressed optimism for business conditions and the economic outlook going forward.

The 14 non-manufacturing industries reporting growth in December, in order, are: Retail Trade; Utilities; Arts, Entertainment & Recreation; Other Services; Health Care & Social Assistance; Accommodation & Food Services; Finance & Insurance; Real Estate, Rental & Leasing; Transportation & Warehousing; Mining; Construction; Wholesale Trade; Public Administration; and Professional, Scientific & Technical Services.

The three industries reporting contraction in December are: Information; Educational Services; and Management of Companies & Support Services.

The full text version of the Non-Manufacturing ISM Report On Business is posted on ISM®‘s website at

The Institute for Supply Management has a membership of 50,000 supply management professionals in more than 90 countries.

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