Today's Report

Economic activity in the services sector grew in September for the 16th month in a row, say the nation’s purchasing and supply executives in the latest Services ISM Report On Business.

The Services PMI registered 61.9 %, 0.2 %age point higher than the reading of 61.7 % in August. The September reading indicates the 16th straight month of growth for the services sector, which has expanded for all but two of the last 140 months.

What Is It?

The ISM Non-Manufacturing Index is an economic index based on surveys of more than 400 non-manufacturing (or services) firms' purchasing and supply executives. The ISM services survey is part of the ISM Report On Business—Manufacturing (PMI) and Services (PMI).

What Are The Fundamental Effects?

It provides significant information about factors that affect total output growth and inflation. A reading above 50 shows a growing non-manufacturing sector and below 50 shows contraction in the non-manufacturing sector.

Why Investors Care?

Monitoring the ISM Services PMI can help investors better understand the economic conditions within the US. Also, some service sectors may experience growth while others contract, which can be helpful when choosing which industry to invest in via equities or corporate bonds. The ISM Services PMI provides significant information about factors affecting total output, growth, and inflation.