The non-manufacturing index registered 54.2% in October, according to a survey of U.S. purchasing and supply executives conducted by the Institute for Supply Management. This was below expectations of 54.9% and last month's reading of 55.1%. But it was above the important 50% level for the 34th consectuive month. A reading above 50% signals expansion in the non-manufacturing sector.
Six out of the 10 sub-components in this report were above 50.0. But the New Orders component did decline from 57.7 to 54.8.
Below is a graph from Calculated Risk Blog showing the trend in the non-manfacturing index over time:
This report comes after a better-than-expected ISM manufacturing survey last week that showed economic activity in the manufacturing sector expanded for the second straight month. Although economic growth in the U.S. is far from robust, it appears that we continue to at least "muddle through".
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