The Institute for Supply Management’s Non-Manufacturing Index (NMI) broke above the key 50-level in September, indicating an overall change for the American services industry to expansion from contraction.
This was the first sign of growth for the NMI after eleven tough months of contraction.
Unfortunately, breaking down into the details of the survey shows that while items such as Business Activity and New Orders are expanding, Employment continues to contract, though the survey’s reading had improved from August. So employment is contracting, but at a slower rate.
Also, only five of eighteen industries were expanding: Healthcare, Utilities, Retail, Construction, and Wholesale trade. One would hope for a more broad-based expansion.
Overall, the NMI shows improvement, yet from a very low base.