NMI: U.S. Service Sector Grew at Strongest Pace Since 2005 in September

The Institute for Supply Management (ISM) said Wednesday the non-manufacturing index (NMI) showed the U.S. service sector continued to surge in September. The NMI registered 59.8 %, which is 4.5 percentage points higher than the August and the highest reading since August 2005.

“According to the NMI, 15 non-manufacturing industries reported growth,” Anthony Nieves, Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee said. “The non-manufacturing sector has reflected strong growth in the month of September despite the impact on the supply chain from the recent hurricanes. Respondents’ comments indicate a good outlook for business conditions.”

The New Orders Index, at 63%, came in 5.9 percentage points higher than the reading of 57.1% in August. The Employment Index gained 0.6 percentage point in September to 56.8% from the August reading of 56.2%.

The Prices Index was the strongest its been since February 2012, gaining a substantial 8.4 percentage points from the August reading of 57.9% to 66.3%. The reading suggests prices increased in September for the fourth consecutive month.

The ADP National Employment Report released earlier Wednesday reported service-providing jobs overall increased by 88,000, led by a 51,000-job gain in professional and business services.