The ISM for non-manufacturing index is out and is down from last month to 50.6%. That's a barely growing number. Anything below 50 is contracting. Employment, at 41.1% has been contracting for 21 out of 22 months now.
This quote tells you which industries are part of this index:
The nine industries reporting growth in October based on the NMI composite index — listed in order — are: Real Estate, Rental & Leasing; Management of Companies & Support Services; Construction; Utilities; Retail Trade; Educational Services; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Wholesale Trade. The seven industries reporting contraction in October — listed in order — are: Arts, Entertainment & Recreation; Other Services; Accommodation & Food Services; Transportation & Warehousing; Public Administration; Finance & Insurance; and Information.
| ISM NON-MANUFACTURING SURVEY RESULTS AT A GLANCE COMPARISON OF ISM NON-MANUFACTURING AND ISM MANUFACTURING SURVEYS* OCTOBER 2009 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-Manufacturing | Manufacturing | ||||||||
| Index | Series Index Oct. |
Series Index Sept. |
% Chg. |
Direction | Rate of Chg. |
Trend** (Mon.) |
Series Index Oct. |
Series Index Sept. |
% Chg. |
| NMI/PMI | 50.6 | 50.9 | -0.3 | Growing | Slower | 2 | 55.7 | 52.6 | +3.1 |
| Bus. Activity Production |
55.2 | 55.1 | +0.1 | Growing | Faster | 3 | 63.3 | 55.7 | +7.6 |
| New Orders | 55.6 | 54.2 | +1.4 | Growing | Faster | 2 | 58.5 | 60.8 | -2.3 |
| Employment | 41.1 | 44.3 | -3.2 | Contracting | Faster | 18 | 53.1 | 46.2 | +6.9 |
| Supplier Deliveries | 50.5 | 50.0 | +0.5 | Slowing | From Unchanged | 1 | 56.9 | 58.0 | -1.1 |
| Inventories | 43.0 | 47.5 | -4.5 | Contracting | Faster | 14 | 46.9 | 42.5 | +4.4 |
| Prices | 53.0 | 48.8 | +4.2 | Increasing | From Decreasing | 1 | 65.0 | 63.5 | +1.5 |
| Backlog of Orders | 53.5 | 51.5 | +2.0 | Growing | Faster | 2 | 53.5 | 53.5 | 0.0 |
| New Export Orders | 53.5 | 48.5 | +5.0 | Growing | From Contracting | 1 | 55.5 | 55.0 | +0.5 |
| Imports | 46.0 | 51.5 | -5.5 | Contracting | From Growing | 1 | 51.0 | 52.0 | -1.0 |
| Inventory Sentiment | 63.5 | 62.0 | +1.5 | Too High | Faster | 149 | N/A | N/A | N/A |
| Customers' Inventories | N/A | N/A | N/A | N/A | N/A | N/A | 38.5 | 39.0 | -0.5 |
The contracting employment numbers are not a good sign, faster than last month and while this index is on the growth side, it's on the cusp.
New orders being up to 55.6% is a good sign as is the export increases. Note inventories are still contracting.
Overall, considering how much job loss there is and contraction there already is, this isn't an encouraging report.
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